Royal Bank of Canada notes French ruling, keeps QPAM status

Royal Bank of Canada reports that the French Supreme Court has upheld key parts of a conviction against its subsidiary, Royal Bank of Canada Trust Company (Bahamas) Limited, related to complicity in estate tax fraud.

Rhea-AI Filing Summary

Royal Bank of Canada reports that the French Supreme Court has upheld key parts of a conviction against its subsidiary, Royal Bank of Canada Trust Company (Bahamas) Limited, related to complicity in estate tax fraud. The ruling makes final RBCTC Bahamas’ joint and several liability for allegedly unpaid inheritance taxes, plus penalties and interest.

Despite the conviction becoming final and enforceable, Royal Bank of Canada continues to rely on a previously granted U.S. Department of Labor exemption. This exemption allows the bank and its affiliates to keep qualifying for the Qualified Professional Asset Manager exemption under U.S. pension law through March 4, 2030.

Insights

Banking regulation and litigation analyst

French court finalizes liability for a subsidiary, while U.S. pension exemption remains in place.

The French Supreme Court has upheld portions of a conviction affecting Royal Bank of Canada Trust Company (Bahamas) Limited, confirming its joint and several liability for allegedly unpaid inheritance taxes, plus penalties and interest. This makes the judgment final and enforceable against the subsidiary.

At the same time, Royal Bank of Canada notes that it continues to rely on a previously disclosed U.S. Department of Labor exemption. This exemption allows the bank and its current and future affiliates to maintain Qualified Professional Asset Manager status under U.S. pension rules through March 4, 2030, notwithstanding the conviction.

The combination of a finalized legal liability in France and continued QPAM eligibility in the U.S. highlights both regulatory risk and operational continuity. Further quantified details are referenced to Note 24 of the audited consolidated financial statements for the year ended October 31, 2025.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did the French Supreme Court decide regarding Royal Bank of Canada Trust Company (Bahamas) Limited?

The French Supreme Court upheld aspects of a conviction affecting Royal Bank of Canada Trust Company (Bahamas) Limited. It confirmed the subsidiary’s joint and several liability for allegedly unpaid inheritance taxes, plus penalties and interest, making the earlier conviction final and enforceable against the entity.

How does the French conviction impact Royal Bank of Canada (RBMCF)?

The conviction impacts Royal Bank of Canada through its subsidiary, which is now jointly and severally liable for allegedly unpaid inheritance taxes, penalties, and interest. The parent company directs investors to Note 24 of its audited consolidated financial statements for additional details on this proceeding.

Does Royal Bank of Canada still qualify for the Qualified Professional Asset Manager exemption?

Yes. Royal Bank of Canada states it continues to rely on a previously granted U.S. Department of Labor exemption. This allows the bank and its current and future affiliates to qualify for the Qualified Professional Asset Manager exemption through March 4, 2030, despite the conviction.

What is the nature of the French proceedings involving RBCTC Bahamas?

The proceedings involve a conviction from the French Court of Appeal regarding a charge of complicity in estate tax fraud. The case relates to actions taken in connection with a trust for which Royal Bank of Canada Trust Company (Bahamas) Limited serves as trustee, and the conviction is now final.

Where can investors find more information about Royal Bank of Canada’s French legal proceedings?

Investors are directed to “Royal Bank of Canada Trust Company (Bahamas) Limited proceedings” in Note 24 of the audited consolidated financial statements. These statements are included in the bank’s Annual Report on Form 40-F for the fiscal year ended October 31, 2025, filed by the registrant.

What time period does the U.S. Department of Labor exemption cover for Royal Bank of Canada?

The exemption from the U.S. Department of Labor allows Royal Bank of Canada and its current and future affiliates to qualify for the Qualified Professional Asset Manager exemption. It extends through March 4, 2030, and explicitly applies notwithstanding the French conviction involving RBCTC Bahamas.

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Form 6-K: How Foreign Companies Report to the SEC →

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Accepted by SEC EDGAR 02/04/2026 - 07:42 PM Learn about SEC filing dates

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of a Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of February, 2026
Commission File Number: 001-13928

Royal Bank of Canada

(Name of registrant)

200 Bay Street
Royal Bank Plaza
Toronto, Ontario
Canada M5J 2J5
Attention: Vice-President, Associate General Counsel and Corporate Secretary
1 Place Ville Marie
Montreal, Quebec
Canada H3B 3A9
Attention: Vice-President, Associate General Counsel and Corporate Secretary 

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F o Form 40-F x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE AS EXHIBITS TO ROYAL BANK OF CANADA’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-275898) AND THE REGISTRATION STATEMENTS ON FORM S-8 (FILE NOS.333-12036, 333-12050, 333-13052, 333-13112, 333-117922, 333-207754, 333-207750, 333-207748, 333-268715, 333-287828 AND 333-287969) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

As previously disclosed, Royal Bank of Canada Trust Company (Bahamas) Limited (“RBCTC Bahamas”) appealed to the French Supreme Court a judgement of conviction (the “Conviction”) rendered on March 5, 2024 by the French Court of Appeal regarding a charge of complicity in estate tax fraud relating to actions taken relating to a trust for which RBCTC Bahamas serves as trustee. The appeal to the French Supreme Court resulted in a temporary stay of the Conviction, as well as its effects (fine and joint liability), under French law pending the outcome of the appeal. On February 4, 2026, the French Supreme Court upheld the aspects of the Conviction that impact RBCTC Bahamas, including RBCTC Bahamas’ joint and several liability for the allegedly unpaid inheritance taxes owing, plus penalties and interest. As a result, the Conviction became final and enforceable against RBCTC Bahamas.

Following the decision of the French Supreme Court, Royal Bank of Canada continues to rely on the previously disclosed exemption granted by the U.S. Department of Labor that allows Royal Bank of Canada and its current and future affiliates to continue to qualify for the Qualified Professional Asset Manager (QPAM) exemption under the Employee Retirement Income Security Act through March 4, 2030 notwithstanding the Conviction.

For additional information on this proceeding, see “Royal Bank of Canada Trust Company (Bahamas) Limited proceedings” in Note 24 of the audited consolidated financial statements of Royal Bank of Canada and its subsidiaries included in the registrant’s Annual Report on Form 40-F for the fiscal year ended October 31, 2025.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		ROYAL BANK OF CANADA
		By:		/s/ Katherine Gibson
		Name: Title:		Katherine Gibson Chief Financial Officer
				Date: February 4, 2026