RBC Asset Management Inc. has won an exemption from a portion of the fund governance rules regarding inter-fund trading. But regulators suggest that other firms should seek similar relief via a different route.

RBC was granted an exemption to permit inter-fund trades to be executed at the last sale price as defined in trading rules, subject to several conditions including independent review committee approval.

Currently, the rules provide an exemption from the inter-fund self-dealing investment prohibitions so long as the transaction occurs at the “current market price of the security”. RBC sought permission to make trades at the last sale price, “prior to the execution of the trade since this will result in the trade being done at the price which is closest to the price at the time the decision to make the trade is made.”

The exemption was granted. However, the decision, reported in today’s OSC Bulletin, says that this case, “should not be used as a drafting precedent… future applicants for similar relief should structure application as direct exemption from… the Act.”