The U.S. Department of Labor has announced a proposed exemption allowing certain asset managers affiliated with the Royal Bank of Canada (RBC) to continue managing retirement plans, despite a conviction against RBC's Bahamas division for aiding tax fraud in France. The exemption, if granted, would last from March 2025 to March 2030, provided RBC meets specific protective conditions. The decision is driven by the need to avoid disruptions and additional costs for retirement plan clients, as well as to maintain fair investment practices. Public comments on this proposal are invited before March 2025.
Simple Explanation
Imagine a bank can keep playing a game, even though one of its friends got in trouble for breaking the rules. The grown-ups in charge are deciding if the bank should still be allowed to play by promising to be very careful and follow new rules.