The FDIC today issued a financial institution letter to notify banks about recent amendments to the prohibited transaction class exemption 84-14 rule, better known as the QPAM exemption.
The Department of Labor in April adopted amendments to the exemption that, among other things, require QPAMs to register with DOL through a one-time notice that the QPAM is relying on the QPAM exemption. The FDIC noted the new requirement in its letter, pointing out that banks have until Sept.15 to notify DOL of their intent to rely upon the exemption.
Other amendments made by the DOL included an update of the list of crimes to expressly include foreign crimes, an expanded list of the circumstances that may lead to QPAM ineligibility, and a one-year winding down period to help pension plans and IRAs transition to a new asset manager in the event a QPAM becomes ineligible.
