QPAM Primer
The QPAM Advantage
Trustees of pension plans that are governed by ERISA should make certain that their real estate investment managers are qualified as a Qualified Professional Asset Manager for several reasons:
- Hiring a QPAM can ensure that the trustees do not inadvertently violate ERISA's stringent party in interest prohibited transaction guidelines. (See Prohibited/Exempted Transactions)
- The use of an investment manager who is also a QPAM allows the pension plan to engage in certain transactions that may otherwise be prohibited under ERISA. (See Prohibited/Exempted Transactions)
- Many Errors & Omissions insurance policies which protect trustees of pension plans from fiduciary liability require as a condition for coverage that all real estate transactions be reviewed, overseen, and passed upon by an investment manager who qualifies as a QPAM.
