Qualified Professional Asset Manager (QPAM)

Written By
Paul Tracy
Updated November 4, 2020

What is a Qualified Professional Asset Manager (QPAM)?

A qualified professional asset manager (QPAM) is a registered investment advisor (RIA) that helps pension plans and similar entities make investments.

How Does a Qualified Professional Asset Manager (QPAM) Work?

The Employee Retirement Income Security Act of 1974 (ERISA) sets the requirements for becoming a QPAM. Generally, QPAMs must be RIAs (meaning they are properly licensed as investment advisors with the Securities and Exchange Commission) with at least $85 million of assets under management and at least $1 million of partners' or shareholders' equity. Banks, insurance companies, and other regulated institutions can become QPAMs. 

QPAMs generally represent pension plans when those pension plans want to partake in private placement transactions. The QPAM's primary job is to vet the private placement on behalf of the pension plan. QPAMs also might help plans invest in real estate or other nontraditional investments

Why Does a Qualified Professional Asset Manager (QPAM) Matter?

When an investment fund or a retirement plan is managed by a QPAM, it can engage in transactions that ERISA usually prohibits. Additionally, because ERISA imposes significant fiduciary duties on pension plan trustees, hiring a QPAM eliminates the risk of trustees being held personally liable as long as they hire a QPAM prudently. However, the investment funds or retirement plans cannot engage in transactions with the QPAM itself or with parties that influence or control the QPAM.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Qualified Professional Asset Manager (QPAM).
Be the first to ask a question

If you have a question about Qualified Professional Asset Manager (QPAM), then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Qualified Professional Asset Manager (QPAM), then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Qualified Professional Asset Manager (QPAM)

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms