A spokesman for RBC Investor Services told Delano on 9 July: “We respect the decision by the CSSF”.

The €120,000 fine (PDF) was issued on 21 May and disclosed on 8 June.

According to the CSSF statement:

“… RBC Investor Services S.A. dismissed the Chief Risk Officer without the prior approval of the Board of Directors. Upon having been made aware of Article 8,  paragraph 3 of the CSSF Regulation, the bank has immediately taken all necessary  actions to ensure future compliance with such provision.”

Article 8, paragraph 3 of CSSF Regulation 15-02 (PDF) requires that the “the head of the risk control function” be “independent” and further reads:

“The head of the risk control function shall not be removed without prior approval of the management body in its supervisory function”.

The EU rules were introduced following the financial crisis, in 2013.

RBC Investor Services is one of the main providers of custody and administration services to investment funds in the grand duchy. RBC Investor Services employed 1,220 staff members in Luxembourg as of 1 January 2019, according to Statec figures. Globally the bank claims C$4.3trn (roughly €2.9trn) in client assets under management.