Goldman Sachs Gets Five-Year Extension of 401(k) Management Pass

The Labor Department granted a five-year exemption renewal to allow Goldman Sachs Group Inc. to manage retirement assets after its Malaysia unit’s ties to the 1MDB bribery scheme put that status in jeopardy.

The Employee Benefits Security Administration issued a notice on Wednesday granting the exemption, which will extend the firm’s status as a qualified professional asset manager, the gold standard for managers in the 401(k) market. The agency had published a proposal for the exemption in April.

QPAMs are protected from being held legally responsible for various prohibited transactions under the Employee Retirement Income Security Act.

The exemption will ...