On April 2, 2024, the Department of Labor finalized an amendment to the QPAM Exemption. As a result of the changes, asset managers could be prohibited from relying on the exemption for a much wider range of activities that, in the Department’s view, call into question a firm’s overall “culture of compliance,” including entry into certain non-prosecution agreements and deferred-prosecution agreements, convictions for certain foreign crimes, and factual findings in civil actions and court-approved settlements brought by certain federal authorities that indicate that a QPAM has violated the conditions of the QPAM Exemption. If an asset manager loses its eligibility to use the QPAM Exemption, it will have to rely on an alternative regulatory exemption, apply for an individual exemption, or be subject to the full set of restrictions imposed by ERISA which, as a practical matter, could significantly undermine its ability to serve benefit plans.