What’s new?
On 5 April 2024, Seward & Kissel, our alliance firm for hedge fund and asset management work, published a client briefing (the Briefing) on the US Department of Labor (DOL) modifications to Prohibited Transaction Class Exemption 84-14 (the QPAM Exemption).
The amendments finalise many of the changes proposed by the DOL in 2022. While the most challenging provision of the 2022 proposal has been dropped, the final QPAM Exemption requires immediate action and long-term consideration by investment managers of ERISA plan assets.
The amendment becomes effective on 17 June 2024. However, certain provisions provide additional time for compliance.
Seward & Kissel’s Briefing
The Briefing looks in turn at:
New client assets under management and shareholders’ and partner’s equity thresholds to qualify for the QPAM exemption
Notification requirement for investment managers who rely on the QPAM Exemption
Requirement to retain records that demonstrate compliance with the QPAM Exemption
Rules around QPAM advisers and sub-advisers and
Expanded types of misconduct that will prevent investment professionals from relying on the QPAM Exemption
For more information on the changes to the QPAM Exemption, contact an attorney at Seward & Kissel (see the list at the foot of the Briefing) or Devarshi Saksena, Lucian Firth or Sarah Crabb.
