Managers overseeing firm’s internal retirement funds largely unaware of new regulation.
Money managers that invest their own retirement fund assets might not be paying close enough attention to a Department of Labor audit requirement, ERISA experts warn.
Money management firms investing assets for their own pension plans have long relied on exemptions from dealings — such as principal transactions with related parties — that are prohibited under the Employee Retirement Income Security Act.
Department of Labor officials estimate 4,400 financial institutions have designated qualified professional asset manager exemptions for their own defined benefit and defined contribution plans. The QPAM designation gives them more flexibility in investment decisions without having to worry about prohibited transactions.