QPAM Exemption Audit

QPAM Exemption Audit

Ashland Partners provides examinations of the Prohibited Transaction Exemption (“PTE”) 84-14 for plan assets transacted by independent Qualified Professional Asset Managers (“QPAM”).

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QPAM Exemption Audit

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law meant to protect retirement assets by establishing minimum standards for pension plans in private industry. The purpose of the rules are to ensure that plan fiduciaries do not misuse plan assets.

A QPAM Exemption Audit is different than the typical audit done for financial statement purposes. The purpose of the audit, as specified in PTE 84-14, is to determine whether the QPAM is in compliance (i) with the QPAM’s written policies and procedures and (ii) with the objective requirements of the exemption.

This will be accomplished by:

• A review of the written policies and procedures adopted by the QPAM;
• A test of a representative sample of the plan’s transactions during the audit period that is sufficient in size and nature to afford the auditor a reasonable basis to determine if the QPAM is in compliance with its policies and procedures and the objective requirements of the exemption; and
• A determination as to whether the QPAM has satisfied the definition of a QPAM.

The audit must be completed within six months following the end of the plan year. For calendar year plans, the audit is due by June 30.

For further information or to discuss how we can help you, please contact us.