Home > Finance > Contrarian Capital: QPAM Certification Explained

Contrarian Capital: QPAM Certification Explained

A Qualified Professional Asset Manager (QPAM) is a specific type of certified advisor as articulated by the Employee Retirement Income Security Act (ERISA). The Act, legislated in 1974, allows institutions that meet certain financial requirements to take part in investment activities that would be restricted if not represented by a QPAM. Regulated institutions, including insurance companies, with at least $1 million in shareholders’ equity and no less than $85 million under management may qualify for QPAM status.

QPAMs primarily enable pension plans to transact with private placement offerings. These placements constitute the sale of equities not registered with the United States Securities and Exchange Commission. The QPAM certification allows pension plans to engage in such activities, while ERISA prohibits non-QPAM represented pension plans from doing so.

Furthermore, trustees of a pension plan may be held liable for certain regulatory obligations. Hiring a certified QPAM minimizes the trustees’ personal liability.

About Contrarian Capital: Established in 1995 by three accomplished investment specialists, Contrarian Capital Management, LLC, is a Qualified Professional Asset Manager. The founders, Jon Bauer, Janice Stanton, and Gil Tenzer, previously worked together at Oppenheimer & Co.

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