DOL Clarifies Position on Guidance In Advisory Opinion on QPAM Exemption

Only direct ownership interests should be taken into account when determining “related” parties under the qualified professional asset manager (QPAM) exemption of Prohibited Transaction Exemption 84-14, the Department of Labor clarified in an information letter dated Nov. 9.

The information letter was requested by Susan M. Camillo, a partner with Dechert LLP in Boston, because DOL’s analysis in Advisory Opinion 2011–06A caused some confusion for the parties requesting the opinion, as well as “other similarly situated parties,” she told BNA Nov. 29.

Advisory Opinion 2011-06A, requested by Camillo and another Dechert attorney, concerned potential transactions between employee ...