Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Economics, Finance, & Analytics
  • Investments, Trading, and Financial Markets

Qualified Professional Asset Manager (QPAM) - Explained

What is a Qualified Professional Asset Manager?

Written by Jason Gordon

Updated at April 17th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is a Qualified Professional Asset Manager?How to Be a Qualified Professional Asset Manager?How Does the Qualified Asset Manager Work?

What is a Qualified Professional Asset Manager?

A qualified professional asset manager is a designation for a registered investment advisors who work with or manage retirement fund assets. QPAM status is an exemption from the restrictions that the Employee Retirement Income Security Act (ERISA) places on transactions involving retirement funds.

Back to:INVESTMENTS & TRADING

How to Be a Qualified Professional Asset Manager?

The requirements to be a QPAM are listed by the Department of Labor in the Prohibited Transaction Class Exemption Section 84-14. To qualify, an investment adviser must:

  • Be a bank, savings and loan or insurance company with equity capital or net worth in excess of $1 million;
  • Be an investment adviser registered with the Securities and Exchange Commission pursuant to the Investment Adviser Act and manage or advise an investment fund with at least $85 million in assets and shareholders' or partners' equity in excess of $1 million;
  • Act as a fiduciary for the client (fund investors); and
  • Not have been previously convicted of a felony affecting trust management.

How Does the Qualified Asset Manager Work?

Remember, this exemption is only relevant to funds holding retiree fund assets (defined contribution or defined benefit funds). ERISA prohibits an investment adviser from entering into transactions involving fund assets (pursuant to Section 406(a)) with any party that has an interest in the plan, such as plan sponsors of other fiduciaries (such as investment or accounting firms). A Qualified Professional Asset Manager is permitted to enter into certain types of otherwise prohibited transactions including sales, exchanges, leases, loans/extensions of credit and the provision of services between a party of interest and a pension plan. There are still prohibitions against the QPAM entering into transaction with itself or with other parties that may have the power to influence the QPAM. More specifically, the other party to the transaction cannot be a related to the QPAM or to a fiduciary who appointed/hired the QPAM. This would still be a breach of fiduciary duty.

qualified professional asset manager qpam

Was this article helpful?

Yes
No

Related Articles

  • Global Depositary Receipts - Explained
  • Bubble Theory - Explained
  • Order Protection Rule - Explained
  • Edgeworth Price Cycle - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand