QPAM Exemption Requirements

Summary

One of the most useful exemptions to the prohibited transaction rules under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (the Code) is Prohibited Transaction Class Exemption 84-14 (PTCE 84-14, or the QPAM exemption) for transactions negotiated by qualified plan asset managers, or QPAMs. PTCE 84-14 is used by managers of collective investment funds, such as hedge funds and real estate funds that are treated as holding ERISA plan assets under Department of Labor (DOL) regulations (see 29 C.F.R. § 2510.3-101) as well as by individual plans and master trusts. This practice note describes the fiduciaries and plans eligible to use PTCE 84-14, the exemption's conditions (and the modifications that will become effective on June 17, 2024), the transactions to which it may apply, and transactions that are not covered by PTCE 84-14. It also discusses other statutory and class prohibited transaction exemptions that may be available to an investing plan in ...