The FDIC issued a Financial Institution Letter on an amended Labor Department rule governing how qualified professional asset managers handle exemption requests under the Prohibited Transaction Class Exemption rule.
Background: The Qualified Professional Asset Manager exemption provides broad relief for employee benefit plan and IRA transactions that would otherwise be prohibited by Title I of the Employee Retirement Income Security Act of 1974 as long as the transactions involve a QPAM.
Rule Amendments: Under the prior rule, QPAMs did not need to notify the Labor Department that they were relying on the exemption. Under the newly amended rule, a one-time notice is now required to continue to rely on the exemption, provided certain conditions are met.
Deadline: Banks have until Sept. 15 to notify the Labor Department of their intent to rely upon the exemption, the FDIC said.