BNP Paribas Investment Partners is seeking a regulatory exemption from the Department of Labor to retain its QPAM status to manage retirement plan assets, said Michael Trupo, DOL spokesman.
The money manager made the request Monday, the same day its parent company, BNP Paribas, pleaded guilty to violating U.S. sanctions and agreed to an $8.97 billion settlement with U.S. and New York state authorities.
DOL-designated qualified professional asset managers that either plead guilty or are convicted of criminal activity are required to apply for an exemption from the Labor Department to keep the designation. The DOL must rule on the exemption before the entity is sentenced; no sentencing date for BNP Paribas has been set.
Cesaltine Gregorio, BNP Paribas spokeswoman, said the company would not comment.
BNP Paribas Investment Partners managed $3.94 billion in U.S. institutional tax-exempt assets, including $1.73 billion in defined contribution assets, both as of Dec. 31, according to Pensions & Investments data.
The DOL is also considering granting permission to Credit Suisse to continue providing asset management services to retirement plans, after its banking entity pleaded guilty to helping U.S. citizens avoid taxes overseas and agreed to a $2.8 billion penalty. Credit Suisse is scheduled to be sentenced Aug. 12. Mr. Trupo could not say when a decision on the firm's QPAM request would be made.
Credit Suisse managed $17.8 billion for U.S. institutional tax-exempt clients as of year-end 2013, according to P&I data.
