Defendant Name: RBC Capital Markets, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Royal Bank of Canada
SIC Code: 6021
CUSIP: 78008710

Initial Case Details

Legal Case Name In the Matter of RBC Capital Markets, LLC
First Document Date 17-Sep-2021
Initial Filing Format Administrative Action
File Number 3-20568
Allegation Type Municipal Securities & Public Pensions

Violations Alleged

Rules G-17, G-11(k), G-27 Municipal Securities Rulemaking Board

Related Violations Alleged

RBC Capital Markets, LLC is alleged to have caused an unidentified individual or entity's violation of Section 15(a)(1) Exchange Act.


First Resolution Date 17-Sep-2021
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

34-93042 17-Sep-2021 Administrative Proceeding
Order Instituting Administrative And Cease-and-Desist Proceedings, Pursuant to Sections 15(b), 15b(c) and 21c of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On September 17, 2021, the SEC instituted settled administrative and cease-and-desist proceedings against RBC Capital Markets, LLC stating: "This matter involves improper conduct by RBC in connection with certain negotiated new issue municipal bond offerings. Between January 2014 and December 2017 (“the relevant period”), RBC, when acting as sole underwriter or senior syndicate manager in negotiated offerings, undertook to allocate bonds according to an internal “standard methodology,” in the absence of different instructions from issuers. The firm’s standard methodology required RBC to fill all orders for customers and all dealer orders for RBC, syndicate members and other broker-dealers before allocating bonds to unregistered brokers known as “flippers.” However, RBC did not always follow the standard methodology when it did not have priority instructions from issuers and, in forty-one instances when orders exceeded the bonds available, it failed to prioritize institutional customer and/or dealer orders ahead of flipper orders."
2021-179 17-Sep-2021 Press Release--Administrative Proceeding
RBC Charged With Failing to Give Priority to Retail and Institutional Investors in Municipal Offerings
The SEC "announced that RBC Capital Markets LLC has agreed to pay more than $800,000 to resolve charges that it engaged in unfair dealing in municipal bond offerings. The SEC also announced settled charges against Kenneth G. Friedrich, RBC's former head of Municipal Sales, Trading and Syndication, and Jaime L. Durando, the head of RBC's municipal syndicate desk."

Related Actions:

In the Matter of Kenneth G. Friedrich
In the Matter of Jaime L. Durando