Defendant Name: RBC Capital Markets, LLC

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

Document Reference: 33-9839

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 and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date 18-Jun-2015
Document Format Administrative Proceeding
File Number 3-16632
Allegation Type Municipal Securities & Public Pensions
Document Summary On June 18, 2015, the SEC instituted settled administrative proceedings against RBC Capital Markets, LLC. According to the Commission: "This matter involves violations of an antifraud provision of the federal securities laws in connection with Respondent's underwriting of certain municipal securities offerings. Respondent conducted inadequate due diligence in certain offerings and as a result, failed to form a reasonable basis for believing the truthfulness of certain material representations in official statements issued in connection with those offerings."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Compliance Related Independent Consultant
Various undertakings
Cooperation Before the Resolution
Self Reporting to SEC
Monetary Penalties:

Civil Penalty

Individual:     $500,000.00 Shared:    

Related Documents:

2015-125_RBC Capital Markets 18-Jun-2015 Press Release--Administrative Proceeding
SEC Charges 36 Firms for Fraudulent Municipal Bond Offerings Cases Are First Against Underwriters in Muni-Bond Disclosure Initiative
On June 18th, 2015, the SEC announced "enforcement actions against 36 municipal underwriting firms for violations in municipal bond offerings. The cases are the first brought against underwriters under the Municipalities Continuing Disclosure Cooperation (MCDC) Initiative, a voluntary self-reporting program targeting material misstatements and omissions in municipal bond offering documents."
33-9848_RBC Capital Markets 18-Jun-2015 Administrative Proceeding
Order Under Rules 262, 405, 505(b)(2)(iii)(C), 506(d)(2)(ii), and 602(e) of the Securities Act of 1933 Granting Waivers of the Disqualification Provisions of Rules 262(b)(3), 505(b)(2)(iii), 506(d)(1)(iv), and 602(c)(3) of the Securities Act of 1933, and Granting Waivers From Being Ineligible Issuers
According to the SEC: "In March 2014, the Division of Enforcement (the 'Division') announced the Municipalities Continuing Disclosure Cooperation Initiative (the 'MCDC Initiative'), a self-reporting program intended to address potentially widespread violations of the federal securities laws resulting from misrepresentations in municipal bond offering documents about prior compliance with continuing disclosure obligations." Previously, the SEC issued separate orders instituting administrative and cease-and-desist proceedings against certain municipal underwriters who participated in the MCDC Initiative (the 'MCDC Underwriters'). On June 18, 2015 the SEC stated: "In light of the participation of the MCDC Underwriters in the MCDC Initiative and their agreement to consent to its terms, assuming the MCDC Underwriters comply with the terms of the MCDC Orders, and in light of the benefits of the MCDC Initiative discussed herein, the Commission has determined that good cause exists for not denying the various exemptions from registration discussed herein, and for MCDC Issuers to receive waivers from being ineligible issuers that results from the entry of the MCDC Orders."