Defendant Name: RBC Capital Markets, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Royal Bank of Canada
SIC Code: 6029
CUSIP: 78008710

Initial Case Details

Legal Case Name In the Matter of RBC Capital Markets, LLC (formerly known as RBC Capital Markets Corp.)
First Document Date 27-Sep-2011
Initial Filing Format Administrative Action
File Number 3-14564
Allegation Type Municipal Securities & Public Pensions

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)

Resolutions

First Resolution Date 27-Sep-2011
Headline Total Penalty and Disgorgement $30,400,000

Related Documents:

33-9262 27-Sep-2011 Administrative Proceeding
Order Instituting Administrative and Cease-And-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 15(b) of the Securities Exchange Act of 1934, and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-And-Desist Order
On September 27, 2011, the SEC filed an order instituting proceedings against RBC Capital Markets. The SEC alleged that the company violated the Securities Act by "negligently selling the CDO Investments to the School Districts, despite significant concerns within RBCCM about the suitability of the product for municipalities like the School Districts. These CDO Investments were unsuitable for the School Districts. RBCCM's marketing materials also failed to explain adequately the risks associated with the CDO Investments." The company submitted an offer that the SEC accepted. As a result of the proceedings RBC must cease and desist from committing any violations and is required to pay disgorgement, pre-judgment interest and a civil penalty.
2011-191 27-Sep-2011 Press Release--Administrative Proceeding
SEC Charges RBC Capital Markets in Sale of Unsuitable CDO Investments to Wisconsin School Districts; Firm Agrees to Pay $30.4 Million to Settle Charges
On September 27, 2011, the SEC announced in a Press Release that: "The Securities and Exchange Commission today charged RBC Capital Markets LLC for misconduct in the sale of unsuitable investments to five Wisconsin school districts and its inadequate disclosures regarding the risks associated with those investments."

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