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:
33-10777
Document Details
Legal Case Name
In the Matter of RBC Capital Markets LLC
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
24-Apr-2020
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$2,607,676.00
Shared:
Civil Penalty
Individual:
$650,000.00
Shared:
Pre-Judgment Interest
Individual:
$631,331.00
Shared:
Total Penalty
Individual:
$3,889,007.00
Shared:
