After a QM resigns, how long can a PPO remain valid without a new QM?

The correct answer indicates that a Proprietary Private Operator (PPO) can remain valid for a specified duration after the resignation of a Qualified Manager (QM), extending for a period that can range from 90 days up to 1 year. This timeframe allows the PPO to operate while an organization transitions to appoint a new QM without having to cease operations immediately.

Recognizing that a QM plays a crucial role in managing the compliance and operational aspects of the PPO, this leeway helps safeguard the interests of the business and its clients during a potentially disruptive transition.

In contrast, shorter periods such as 30 days or 60 days would not offer sufficient time for an adequate search and transition process, setting the stage for operational difficulties and potential non-compliance issues. The periodic policy expectation is that businesses stay compliant and operationally stable, which is why the range up to 1 year is more supportive of long-term operational integrity. Thus, the 90-day to 1-year period reflects a balanced approach in regulatory oversight of the industry to allow for stability during managerial transitions.