Qualified Professional Asset Manager (QPAM)

What is ‘Qualified Professional Asset Manager – QPAM’

A registered investment advisor/manager. The criteria for qualifying as a QPAM are defined by the Employee Retirement Income Security Act (ERISA). Regulated institutions such as banks and insurance companies may qualify as a QPAM. Under amendments that came into effect in August 2005, a QPAM is also defined as a registered investment adviser with client assets under management of at least $85 million, and shareholders’ or partners’ equity in excess of $1 million.

Explaining ‘Qualified Professional Asset Manager – QPAM’

The QPAM exemption is widely used by parties who conduct transactions with accounts holding retirement plan funds. Essentially, the QPAM exemption allows an investment fund that is managed by a QPAM to engage in a wide range of transactions (such as sales, exchanges and leases, and the provision of goods and services) – that would otherwise be prohibited by ERISA – with practically all parties in interest such as plan sponsors and fiduciaries. However, such transactions cannot be entered into with the QPAM itself or with those parties that may have the power to influence the QPAM.

Further Reading

  • Spotting ERISA Issues in Mortgage Loans – heinonline.org [PDF]
  • The ERISA Eligibility of TALF and PPIP Loans and Securities: Do the Government's Programs and ERISA Mesh? – jsf.pm-research.com [PDF]
  • Derivatives-power tools for pension funds – go.gale.com [PDF]
  • Fund Investing: What to Ask for and How to Ask for It – journals.sagepub.com [PDF]
  • Managing Risk and Creating Value in Real Estate Investments: The Importance of Due Diligence – heinonline.org [PDF]
  • Helping Dorothy Find the Way – heinonline.org [PDF]
  • Investment Tax Credit for Certified Historic Structures Converted to Condominiums – heinonline.org [PDF]