DOL Exemption for Certain UBS Asset Managers in Switzerland
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Allows certain UBS-related asset managers to keep using the QPAM exemption under PTE 84-14 from May 5, 2026, through May 5, 2035, despite several criminal convictions and a non-prosecution agreement involving UBS or Credit Suisse affiliates. This matters for ERISA pension plans and IRAs that use UBS managers, because the exemption lets those managers continue handling transactions that would otherwise be restricted. UBS managers must meet conditions designed to separate plan asset management from the misconduct, protect plan clients, and give plan fiduciaries information they need. Compliance teams should track the exemption period, client notice duties, audit obligations, indemnity commitments, and any breach reporting tied to the exemption.
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Key Changes
- Extends UBS-related QPAM relief under PTE 84-14 from May 5, 2026, through May 5, 2035.
- Requires UBS QPAMs to meet protective conditions tied to past UBS and Credit Suisse misconduct.
- Reduces the audit schedule from annual audits to two independent audits during the exemption period.
Obligations
What this law requires
UBS Qualified Professional Asset Managers may rely on PTE 84-14 notwithstanding the specified UBS/Credit Suisse convictions and non-prosecution agreement only during the exemption period and only if the exemption conditions are satisfied.
UBS must immediately notify the Department of Labor if any material statement in the exemption record attributable to the exemption is not, or may no longer be, completely and factually accurate.
UBS QPAMs must complete an independent audit covering the consecutive twelve-month period from May 5, 2029 through May 4, 2030.
UBS QPAMs must complete an independent audit covering the twelve-month period from May 5, 2034 through May 5, 2035.
UBS QPAMs must maintain and adhere to policies and procedures required by the exemption, including controls intended to ensure compliance with PTE 84-14 and to keep Covered Plan asset management insulated from UBS corporate or business decision-making and misconduct.