The Royal Bank of Canada is Canada's largest bank. The bank has over 1,300 branches in Canada and approximately 80,000 employees in 55 countries.
U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
FORM 40-F
[Check one]
ROYAL BANK OF CANADA(Exact name of registrant as specified in its charter)
200 Bay StreetRoyal Bank PlazaToronto, OntarioCanada M5J 2J5Attention: Senior Vice-President& Corporate Secretary(416) 974-6234(Address and telephone number of registrants principal executive offices)
Royal Bank of CanadaOne Liberty PlazaNew York, New York 10006-1404Attention: Laurel A. Nichols(212) 428-6236(Name, address (including zip code) and telephone number (including area code)of agent for service in the United States)
copies of all correspondence should be sent to:
Securities registered or to be registered pursuant to section 12(b) of the Act.
Securities registered or to be registered pursuant to Section 12(g) of the Act.
Not Applicable
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
For annual reports, indicate by check mark the information filed with this Form:
Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the annual report.
Indicate by check mark whether the Registrant by filing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the Exchange Act). If Yes is marked, indicate the file number assigned to the Registrant in connection with such Rule.
Yes o No x
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes x No o
INCORPORATION BY REFERENCE
Exhibits 1 to 3 and 5 to this report are incorporated by reference.
UNDERTAKING
The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises or transactions in said securities.
DISCLOSURE CONTROLS AND PROCEDURES
As of October 31, 2003, an evaluation was carried out, under the supervision of and with the participation of the Registrants management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15) under the Securities Act of 1934. Based on that evaluation our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective. No significant changes were made in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.
AUDIT COMMITTEE FINANCIAL EXPERT
The Registrants board of directors has determined that it has at least one audit committee financial expert serving on its audit committee. Mr. Pedro Reinhard has been determined to be such audit committee financial expert and is independent, as that term is defined by the New York Stock Exchanges listing standards applicable to the Registrant. The SEC has indicated that the designation of Mr. Reinhard as an audit committee financial expert does not make Mr. Reinhard an expert for any purpose, impose any duties, obligations or liability on Mr. Reinhard that are greater than those imposed on members of the audit committee and board of directors who do not carry this designation or affect the duties, obligations or liability of any other member of the audit committee.
CODE OF ETHICS
The Registrant has adopted a code of ethics (the Code of Conduct) that applies to all employees and officers, including its principal executive officer, principal financial officer and principal accounting officer. The Code of Conduct is available at the Registrants Internet website, www.rbc.com.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
Deloitte & Touche LLP has served as one of the Registrants auditing firms for the previous six years, and became the Registrants sole auditor in 2003. Fees payable for the years ended October 31, 2003 and October 31, 2002 to Deloitte & Touche LLP and its affiliates are $22.0 million and $12.6 million. Fees payable to auditors in 2003 and 2002 are detailed below.
PricewaterhouseCoopers LLP also served as one of the Registrants auditing firms until September 23, 2003. Up to its resignation on September 23, 2003, fees payable to PricewaterhouseCoopers LLP and its affiliates were approximately $10.0 million. For 2003, fees payable to Deloitte & Touche LLP and PricewaterhouseCoopers LLP were $32.0 million in total. The fees for 2002 have been reclassified consistent with the categories and reporting for 2003.
The nature of each category of fees is described below.
Audit Fees
Audit fees were paid for professional services rendered by the auditors for the audit of the Registrants annual financial statements or services provided in connection with statutory and regulatory filings or engagements.
Audit-Related Fees
Audit-related fees were paid for assurance and related services that are reasonably related to the performance of the audit or review of the annual financial statements and are not reported under the audit fees item above. These services consisted of: special attest services as required by various government entities; reporting on the effectiveness of internal controls as required by contract or for business reasons including the reporting on internal controls for pension custody clients; accounting consultations and special audits in connection with acquisitions; the audit of the financial statements of the Registrants various pension plans and charitable foundation; the audits of various trusts and other entities as required in connection with the securitization of credit cards and mortgages loans; and the audit of certain special purpose vehicles relating to complex structured products.
Tax Fees
Tax fees were paid for tax compliance, tax advice and tax planning professional services. These services consisted of: tax compliance including the review of original and amended tax returns, assistance with questions regarding tax audits, the preparation of employee tax returns under the Registrants expatriate tax services program and assistance in completing routine tax schedules and calculations; and tax planning and advisory services relating to common forms of domestic and international taxation (i.e., income tax, capital tax, Goods and Services Tax and Value Added Tax).
All Other Fees
Fees disclosed in the table above under the item all other fees were paid for products and services other than the audit fees, audit-related fees and tax fees described above. These services consisted of:
Pre-Approval Policies and Procedures
The Audit Committee has considered whether the provision of services other than audit services is compatible with maintaining the auditors independence and has adopted a policy governing the provision of these services. This policy is set forth in Exhibit 7. For the year ended October 31, 2003, none of the services described above were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
OFF-BALANCE SHEET ARRANGEMENTS
See pages 63 to 65 of Exhibit 2 and pages 63A to 65A of Exhibit 3.
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
See page 63 of Exhibit 2 and page 63A of Exhibit 3.
IDENTIFICATION OF THE AUDIT COMMITTEE
See page 23 of Exhibit 1.
SIGNATURES
Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
ANNUAL REPORT PURSUANT TO
SECTION 13(a) or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
ROYAL BANK OF CANADA
EXHIBITS
INDEX TO EXHIBITS