WASHINGTON — Hedge funds might benefit from new DOL revisions to exemptions from prohibited-transaction rules, but the changes could make it more expensive for financial services companies to manage their own pension plans.
Among the rave reviews from those who represent hedge funds:
•The DOL revisions are "better than I ever dreamed of. All of the changes that we wanted got made," said Melanie Nussdorf, partner in the Washington law firm of Steptoe & Johnson LLP and an outside general counsel to the Securities Industry Association.
•Executives at the Managed Funds Association, Washington, are "thrilled," said Scott Parsons, executive vice president for strategic and government affairs.
•"Fabulous" is how Richard Susko, partner in the New York law firm of Cleary, Gottlieb, Steen & Hamilton described the changes in the broad-based "qualified professional asset manager" exemption from ERISA's banned transactions.
"You have to start with the proposition that ERISA prohibits so many transactions that are good for plans, so enabling an investment manager to make good investment decisions based on risk, return and best execution without regard to hyper-technical rules makes a lot of sense," Mr. Susko said.