The Department of Labor’s Employee Benefit Security Administration (EBSA) granted a prohibited transaction exemption for certain entities with specified relationships to Deutsche Bank AG.
PTE 2015-15, published in the Sept. 4 Federal Register, will allow those entities to continue to rely on PTE 84-14 for nine months following the criminal conviction of Deutsche Securities Korea Co. (DSK) for spot/futures-linked market price manipulation.
The PTE sets the conditions under which certain defined benefit qualified professional asset managers (QPAM)s may continue to maintain a relationship with Deutsche Bank. Under the PTE, DSK has not, and will not, provide fiduciary or QPAM services to ERISA-covered plans or IRAs, and will not otherwise exercise discretionary control over plan assets.
The conviction is only part of the bad news Deutsche Bank has received this year. In April, it agreed to pay an $800 million civil penalty to settle charges by the U.S. Commodity Futures Trading Commission that it had been routinely engaging in acts of false reporting and market manipulation. And the DOL recently told Deutsche Bank a letter that it has tentatively rejected its request to continue managing U.S. pension funds.
PTE 2015-15, published in the Sept. 4 Federal Register, will allow those entities to continue to rely on PTE 84-14 for nine months following the criminal conviction of Deutsche Securities Korea Co. (DSK) for spot/futures-linked market price manipulation.
The PTE sets the conditions under which certain defined benefit qualified professional asset managers (QPAM)s may continue to maintain a relationship with Deutsche Bank. Under the PTE, DSK has not, and will not, provide fiduciary or QPAM services to ERISA-covered plans or IRAs, and will not otherwise exercise discretionary control over plan assets.
The conviction is only part of the bad news Deutsche Bank has received this year. In April, it agreed to pay an $800 million civil penalty to settle charges by the U.S. Commodity Futures Trading Commission that it had been routinely engaging in acts of false reporting and market manipulation. And the DOL recently told Deutsche Bank a letter that it has tentatively rejected its request to continue managing U.S. pension funds.
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