📜RBC Granted Regulatory Exemption Under ERISA and Internal Revenue Code
Exemption for the Royal Bank of Canada and Its Current and Future Affiliates (Collectively, RBC or the Applicant) Located in Toronto, Ontario, Canada
Summary
This document provides notice of an individual exemption from certain prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (the Code). This exemption permits certain qualified professional asset managers with specified relationships to Royal Bank of Canada Trust Company (Bahamas) Limited, and certain current and future affiliates of the Royal Bank of Canada (collectively, the RBC QPAMs), to continue to rely on the class exemptive relief granted in Prohibited Transaction Exemption (PTE) 84-14 (PTE 84-14 or the QPAM Exemption), notwithstanding the March 5, 2024 judgment of conviction against Royal Bank of Canada Trust Company (Bahamas) Limited (RBCTC Bahamas) for aiding and abetting tax fraud, entered in France in the Paris Court of Appeal.
Agencies
- Labor Department
- Employee Benefits Security Administration
Business Impact
$$$ - High
The content outlines a regulatory exemption for RBC and its affiliates that affects compliance with ERISA and the Internal Revenue Code, which directly impacts business operations and financial transactions for asset managers reliant on the QPAM Exemption. It also indicates the potential for significant financial liabilities and costs associated with transitioning to new asset managers if the exemption is not upheld.