⚖️RBC QPAMs Proposed Exemption from ERISA Restrictions Explained
Proposed 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 the pendency before the Department of Labor (the Department) of a proposed individual exemption from certain of the prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 (ERISA or the Act) and the Internal Revenue Code of 1986 (the Code). This proposed exemption would permit 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
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The proposed exemption allows RBC QPAMs to bypass certain ERISA restrictions following a conviction, impacting compliance for businesses relying on these managers for asset management. This affects fiduciaries and plans, potentially leading to significant financial implications if the exemption is denied, as well as litigation and regulatory scrutiny.