The U.S. Department of Labor (DOL) recently released a proposal (Proposal) to amend the Prohibited Transaction Class Exemption 84‑14, known as the qualified professional asset manager (QPAM) exemption. Managers of pension and welfare funds – including managers of PE funds and hedge funds that are or may be deemed to have “plan assets” under the DOL’s plan asset regulations – should begin evaluating the possible impact of those revisions and assess what changes to processes and procedures will be required for continued reliance on the QPAM exemption if the Proposal becomes final. In a guest article, Lowenstein Sandler partners Andrew E. Graw and Megan Monson lay out significant changes contemplated by the Proposal, including an increase in minimum capitalization and asset under management requirements to qualify as a QPAM; new rules regarding notification, registration and recordkeeping; and additional terms for management agreements. In addition, the article offers an overview of the QPAM exemption, its significance to the private funds industry and suggestions for how fund managers can prepare for potential adoption of the changes in the Proposal. For more on issues affecting pension funds, see “DOL Proposes Rule Favoring Inclusion of ESG Factors in Pension Plan Investment Decisions, Further Negating Contrary Trump‑Era Guidance” (Nov. 30, 2021); and “Marketing to Public Pension Plans: Municipal Advisors; Pay to Play Laws; and Gift and Entertainment Rules (Part One of Two)” (May 28, 2019).