Labor department proposes QPAM Exemption overhaul

The Department of Labor provided a proposition Wednesday that would substantially modify the requirements for banks and other financial investment supervisors of retirement possessions to count on Prohibited Transaction Exemption 84-14, referred to as the Qualified Professional Asset Manager Exemption. Investment supervisors count on the QPAM Exemption in order to take part in a range of financial investment and other deals that otherwise would be restricted under the Employee Retirement Income Retirement Act.

Under the proposition, a bank or other financial investment supervisor would, to name a few things, be needed to alert DOL of its dependence on the QPAM Exemption; undergo broadened QPAM ineligibility requirements for criminal convictions and for restricted misbehavior of the QPAM or an affiliate; be needed to consist of specific legal arrangements, consisting of indemnification language, in the financial investment management arrangement; and undergo recordkeeping, and recordkeeping assessment and evaluation, requirements.

Comments to the DOL proposition are due Sept. 26. The American Bankers Association has actually formed a QPAM Task Force to react to the proposition.


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