The U.S. Department of Labor has issued an amendment that extends the effective periods of Prohibited Transaction Exemptions (PTEs) for the Royal Bank of Canada and Northern Trust Corporation. These amendments allow certain entities to continue operations without disruption due to legal issues in France related to tax fraud convictions. The extension is until September 4, 2025, or until a final decision is made on their longer-term requests. Both RBC and Northern must adhere to specific conditions to utilize this extended relief.
Simple Explanation
The U.S. Department of Labor is letting two big banks, the Royal Bank of Canada and Northern Trust, have more time to deal with some complicated rules so they can keep working while they figure out some problems in another country. The banks must follow some special rules to keep this extra time until September 2025.