Defendant Name: Royal Alliance Associates, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: American International Group, Inc.
SIC Code: 6399
CUSIP: 02687478

Initial Case Details

Legal Case Name In the Matter of Royal Alliance Associates, Inc.
First Document Date 13-Nov-2020
Initial Filing Format Administrative Action
File Number 3-20152
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Section 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 13-Nov-2020
Headline Total Penalty and Disgorgement $502,400

Related Documents:

IA-5629 13-Nov-2020 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On November 13, 2020, the SEC instituted settled cease-and-desist proceedings against Royal Alliance Associates, Inc. The Commission stated: "This matter concerns Royal Alliance’s failure to adopt and implement policies and procedures reasonably designed to prevent unsuitable investments in volatility-linked exchangetraded products (“ETPs”). As a result, the investment adviser representatives of Royal Alliance (“IARs”) used their discretionary authority over client accounts to buy and hold a complex ETP for time periods that were inconsistent with the purpose of the product as described in its offering materials."
2020-282_3-20152 13-Nov-2020 Press Release--Administrative Proceeding
SEC Charges Investment Advisory Firms and Broker-Dealers in Connection with Sales of Complex Exchange-Traded Products
The SEC stated that: "[It] filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products to retail investors. The sales occurred between January 2016 and April 2020. These actions are the first arising from investigations generated by the Division of Enforcement's Exchange-Traded Products Initiative, which utilized trading data analytics to uncover potential unsuitable sales. The five actions filed today -- against American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., Royal Alliance Associates Inc., Securities America Advisors Inc., and Summit Financial Group Inc. -- will result in the return of over $3 million to harmed investors. "