As discussed in our prior client Update on this topic, on April 3, 2024, the U.S. Department of Labor (DOL) published a final amendment (the Amendment) to Prohibited Transaction Class Exemption 84-14 (the Exemption), which became effective June 17, 2024.
Among other requirements, the Amendment requires a qualified professional asset manager (QPAM) to submit a one-time email notice to the DOL setting forth the legal and operating name(s) of the QPAM. The email notice must be sent to the DOL at QPAM@dol.gov within 90 days of the QPAM’s reliance on the Exemption. For a QPAM that relies on the Exemption as of the effective date of the Amendment (i.e., June 17, 2024), this email must be sent no later than September 15, 2024. The Amendment requires a separate email notification to be provided on behalf of each entity relying on the exemption, even if they are related. A sample DOL notice is provided below.
The notice requirement is one of several new requirements for QPAMs under the Amendment. Sidley will provide guidance on other notable requirements via additional client Updates.
Sample DOL Notice
To: QPAM@dol.gov
Date: [INSERT DATE]
Re: PTE 84-14 – QPAM Initial Notification
In accordance with Section I(k) of Prohibited Transaction Class Exemption (“PTE”) 84-14, [Manager’s Legal Name] (the “Manager”), which operates under the operating name(s) set forth below, hereby notifies the Department that the Manager expects that it may rely on PTE 84-14 in connection with managing “plan assets” subject to ERISA and/or Section 4975 of the Code. For avoidance of doubt, PTE 84-14 may not be the sole exemption relied upon by the Manager in managing such plan assets, and the Manager reserves the right to determine whether and to what extent it will rely on PTE 84-14 with respect to a particular transaction.
Manager’s Legal Name: [__________]
Manager’s Operating Name(s): [__________]
