Associations seek comment extension for proposed QPAM amendments

The American Bankers Association and seven trade groups submitted a letter today to the U.S Department of Labor requesting a 60-day extension for the comment period on proposed amendments to Prohibited Transaction Exemption 84-14, known as the Qualified Professional Asset Manager exemption. If granted, it would extend the comment deadline from Sept. 26 to Nov. 25.

The letter states that additional time is required to respond to the department due to the proposal’s requirement that all investment management contracts be amended; the complexities of analyzing and assessing the proposal’s foreign crimes disqualification provisions; and the requirement that the asset manager (i.e., the QPAM) be solely responsible for investment fund transactions. These and other provisions would considerably alter the scope and structure of the plan sponsor-QPAM relationship, and therefore, significantly impact a QPAM’s ability to continue relying on the exemption, the groups said.