# What Is a Qualified Professional Asset Manager (QPAM)?

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> **Definition**
>
> A qualified professional asset manager (QPAM) is a registered investment adviser (RIA) who assists institutions with financial investments.

## What Is a Qualified Professional Asset Manager (QPAM)?

A qualified professional asset manager (QPAM) is a [registered investment adviser](https://www.investopedia.com/terms/r/ria.asp) (RIA) who assists institutions with financial investments. QPAMs focus on retirement accounts, such as pension plans. A retirement plan managed by a QPAM means they can transact in areas otherwise prohibited by the [Employee Retirement Income Security Act](https://www.investopedia.com/terms/e/erisa.asp) (ERISA).

### Key Takeaways

*   A qualified professional asset manager (QPAM) is a registered investment adviser that assists institutions in making investments.
*   QPAMs focus on retirement accounts, such as pension plans.
*   When employing a QPAM, investment funds can do business in areas otherwise prevented by ERISA.
*   Banks and insurance companies may qualify as QPAMs if they are registered investment advisers with the Securities and Exchange Commission (SEC).

## QPAMs and ERISA

The QPAM [exemption](https://www.investopedia.com/terms/e/exemption.asp) from ERISA regulation is widely used by parties who conduct transactions with accounts holding [retirement plan](https://www.investopedia.com/terms/r/retirement-planning.asp) funds. ERISA prohibits certain transactions when an ERISA-governed plan or fund transacts business with an entity with conflicts of interest.

When a QPAM is used, the restriction is lifted with [plan sponsors](https://www.investopedia.com/terms/p/plansponsor.asp) and [fiduciaries](https://www.investopedia.com/terms/f/fiduciary.asp). QPAMs represent pension plans when they want to engage in [private placements](https://www.investopedia.com/terms/p/privateplacement.asp). QPAMs vet the private placement for the pension fund.

A QPAM is a registered investment adviser with defined client [assets under management](https://www.investopedia.com/terms/a/aum.asp) (AUM) and [shareholder's equity](https://www.investopedia.com/terms/s/shareholdersequity.asp). In 2024, the U.S. Department of Labor redefined these thresholds:

## QPAM Qualifications

The qualifications for a qualified professional asset manager are codified in Prohibited Transaction Class Exemption 84-14 issued by the [Department of Labor](https://www.investopedia.com/terms/d/dol.asp).

*   The QPAM must be a bank or insurance company with defined equity capital or net worth and specified assets under management.
*   The asset manager must acknowledge in writing to the client that it is acting as a fiduciary.
*   The QPAM must negotiate the terms of the transaction and decide on behalf of the plan whether to engage in the transaction.
*   The QPAM may not have been convicted of activities that affect the financial trust. 

> **Fast Fact**
>
> The Investment Advisers Act of 1940 is a U.S. federal law that regulates and defines the role and responsibilities of an investment advisor and monitors those who advise pension funds, individuals, and institutions.

## What Investments Can QPAMs Assist With Besides Retirement Plans?

Qualified professional asset managers may also assist investment plans with [investing in real estate](https://www.investopedia.com/ask/answers/040815/what-does-asset-management-mean-regards-real-estate.asp) or other alternative investments.

## What Is the Purpose of ERISA?

The Employee Retirement Income Security Act (ERISA) is a federal law that protects the retirement savings of United States employees. The law outlines rules that [qualified plans](https://www.investopedia.com/terms/q/qrp.asp) must follow to ensure that plan fiduciaries do not misuse plan assets.

## Which Agency Monitors Registered QPAMs?

As of 2024, the U.S. Department of Labor plans to maintain a list of QPAMs relying on the ERISA exemption on its website. 

  

## The Bottom Line

A QPAM is a registered investment adviser that assists institutions in investing in retirement accounts. A QPAM can benefit from exemptions required by ERISA. Banks and insurance companies may qualify as QPAMs if registered with the Securities and Exchange Commission.

> **Article Sources**
>
> 1.  U.S. Department of Labor. "[U.S. Department of Labor Announces Final Amendment to QPAM Exemption](https://www.dol.gov/newsroom/releases/ebsa/ebsa20240402)."
>     
> 2.  U.S. Department of Labor. "[Amendment to Prohibited Transaction Class Exemption 84-14 for Transactions Determined by Independent Qualified Professional Asset Managers (the QPAM Exemption)](https://www.federalregister.gov/documents/2024/04/03/2024-06059/amendment-to-prohibited-transaction-class-exemption-84-14-for-transactions-determined-by-independent)."
>     
> 3.  Duane Morris. "[U.S. ERISA QPAM Excemption](https://www.amazon.duanemorris.com/site/static/us_erisa_qpam_exemption.pdf)."