📊Amendments to PTEs 2016-10 and 2016-11
Amendment To Extend Effective Dates for Prohibited Transaction Exemptions: Royal Bank of Canada, Toronto, Canada; Northern Trust Corporation, Chicago, Illinois
Summary
This document provides notice of an amendment to Prohibited Transaction Exemptions (PTEs) 2016-10, granted to Royal Bank of Canada (together with its Current and Future Affiliates, RBC), and 2016-11, granted to Northern Trust Corporation (together with its Current and Future Affiliates, Northern) that extends the effective periods of the exemptions for up to six months if RBC and Northern meet certain conditions. The amendment to PTE 2016-10 is referred to herein as the RBC QPAM Amendment, and the amendment to PTE 2016-11 is referred to herein as the Northern QPAM Amendment (collectively, the Amendments).
Agencies
- Labor Department
- Employee Benefits Security Administration
Business Impact
$$$ - High
The amendments to Prohibited Transaction Exemptions will impact compliance requirements for asset managers and could affect business relationships with counterparties. The relief provided by the amendments relates to operational freedom for QPAMs and impacts fiduciary obligations, which are critical for investment-related businesses.