Defendant Name:
RBC Capital Markets, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Royal Bank of Canada
SIC Code:
6029
CUSIP:
78008710
Document Reference:
33-9262
Document Details
Legal Case Name
In the Matter of RBC Capital Markets, LLC (formerly known as RBC Capital Markets Corp.)
Document Name
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
Document Date
27-Sep-2011
Document Format
Administrative Proceeding
Allegation Type
Municipal Securities & Public Pensions
Document Summary
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.
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$6,600,000.00
Shared:
Civil Penalty
Individual:
$22,000,000.00
Shared:
Pre-Judgment Interest
Individual:
$1,800,000.00
Shared:
