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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.

NEXT: The QPAM Exemption Explained