The Department of Labor announced today that it is reopening the comment period for the proposed change to the qualified professional asset manager exemption. The new comment period will remain open until April 6.
The DOL indicated it reopened the comment period because “at least one interested party” may have additional information to present that was not submitted by the previous deadline of January 6.
The new QPAM exemption rule was initially published on July 27, 2022, and the comment period has been both extended and reopened before, including after a public hearing on the proposal on November 17, 2022.
A QPAM is an institution that manages transactions between a retirement plan and “parties in interest.” A QPAM is independent of both the plan and the parties in interest, must act in the best interests of the plan and cannot have any convictions on its record that would compromise its integrity.
The proposed change would clarify that foreign convictions for offenses which also exist in the U.S. would count against a QPAM, as would non-prosecution agreements with the Department of Justice.
A QPAM would also have to indemnify clients for the cost to the client of the QPAM’s disqualification, such as the cost associated with finding another QPAM. The proposed change would also allow the disqualified QPAM to process previously agreed-upon transactions for the plan for one year, even though no new transactions would be permitted.