📈Proposed Amendments for RBC and Northern Trust PTEs Explained
Proposed Amendment To Extend the Effective Dates for Prohibited Transaction Exemption (PTE) 2016-10 Involving Royal Bank of Canada (Together With Its Current and Future Affiliates, RBC) Located in Toronto, Canada, and PTE 2016-11 Involving Northern Trust Corporation (Together With Its Current and Future Affiliates, Northern) Located in Chicago, Illinois
Summary
The Department of Labor (the Department) is proposing to extend the effective periods of PTEs 2016-10 (granted to RBC) and 2016- 11 (granted to Northern), which currently are scheduled to expire on March 4, 2025, for up to six months if RBC and Northern meet certain conditions. The proposed amendment to PTE 2016-10 is referred to herein as the RBC Proposed QPAM Amendment, and the proposed amendment to PTE 2016-11 is referred to herein as the Northern Proposed QPAM Amendment.
Agencies
- Labor Department
- Employee Benefits Security Administration
Business Impact
$$$ - High
The proposed amendments to extend Prohibited Transaction Exemptions (PTEs) 2016-10 and 2016-11 have significant implications for RBC and Northern, as businesses relying on these exemptions must meet specific conditions. The impacts of any gap period could lead to financial losses and defaults on transactions, affecting client plans and beneficiaries.