The Department of Labor is deferring a final decision on Credit Suisse’s bid for permission to continue providing asset management services to retirement plans, after its banking entity pleaded guilty to helping U.S. citizens avoid taxes overseas.
The Labor Department will hold a public hearing Jan. 15 on whether to grant a permanent exemption, and under what conditions. Until then, Credit Suisse has a temporary exemption with several conditions, “to avert possible disruptions in retirement plan investments that would be detrimental to the financial well-being of individuals saving for retirement, or pensions,” said a DOL statement Friday.
The company can continue to manage retirement plan assets while waiting for the permanent exemption. It managed $17.8 billion for U.S. institutional tax-exempt clients as Dec. 31, according to Pensions & Investments data.
DOL officials have granted waivers for all 23 firms seeking individual waivers since 1997, with conditions specific to each case.