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
First Document Date 24-Apr-2020
Initial Filing Format Administrative Action
File Number 3-19769
Allegation Type Broker Dealer

Violations Alleged

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

Resolutions

First Resolution Date 24-Apr-2020
Headline Total Penalty and Disgorgement $3,889,007

Related Documents:

33-10777 24-Apr-2020 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 April 24, 2020, the SEC instituted settled administrative and cease-and-desist proceedings against RBC Capital Markets LLC. The SEC stated: "From at least July 2012 through August 2017 (the "Relevant Period"), RBC disadvantaged certain retirement plan and charitable organization brokerage customers who maintained accounts at RBC ("Eligible Customers") by failing to ascertain that they were eligible for a less expensive share class, and recommending and selling them more expensive share classes in certain open-end registered investment companies ("mutual funds") when less expensive share classes were available. RBC did so without disclosing that it would receive greater compensation from the Eligible Customers' purchases of the more expensive share classes."
33-10777-s 24-Apr-2020 Administrative Summary
SEC Charges Rbc Capital Markets LLC for Disclosure Failures Related to Retirement and Charitable Customers
The SEC: "announced that RBC Capital Markets LLC, a registered broker-dealer and investment adviser located in New York City, agreed to settle charges that it failed to disclose potential conflicts of interest to certain retail retirement account and charitable organization brokerage customers."