Defendant Name: RBC Capital Markets, LLC

Defendant Type: Subsidiary of Public Company

Document Reference: 33-10777-s

Document Details

Legal Case Name In the Matter of RBC Capital Markets LLC
Document Name SEC Charges Rbc Capital Markets LLC for Disclosure Failures Related to Retirement and Charitable Customers
Document Date 24-Apr-2020
Document Format Administrative Proceeding
File Number 3-19769
Allegation Type Broker Dealer
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Disgorgement

Individual:     $2,607,676.00 Shared:    

Civil Penalty

Individual:     $650,000.00 Shared:    

Pre-Judgment Interest

Individual:     $631,331.00 Shared:    

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."