SIFMA Urges DOL to Withdraw Proposed Amendments to QPAM Exemption

SIFMA requested that the DOL withdraw proposed amendments to the Prohibited Transaction Class Exemption 84-14 (the "QPAM Exemption"). SIFMA argued that the amendments would impede access to markets and are unnecessarily burdensome and costly.

In a supplemental Comment Letter, SIFMA asserted that the majority of employers and plan managers oppose any changes to the QPAM Exemption, which, SIFMA said, "has worked extraordinarily well in allowing plans to access the investment markets over the past almost 40 years, facilitating retirement plans' access to a variety of investments, and allowing plans to operate on an efficient and effective basis." SIFMA argued that the QPAM Exemption is well understood and accepted and that the proposed amendments would hurt plans' access to the markets. SIFMA noted that no other class exemption contains a disqualification provision, and ERISA's existing prohibited transaction provisions already have built in consequences for failing to satisfy any applicable requirements. SIFMA asserted that additional DOL oversight was unnecessary, and that requiring all plan managers to register with the DOL would provide little to no benefit to the department or the public. SIFMA said that the proposed amendments would offer plan managers less choice and more expensive solutions to plans without any safety or performance improvements.

SIFMA urged the DOL to consider alternative solutions that do not impede plan manager market access should it determine that additional oversight of plan managers using the exemption is necessary.