Defendant Name:
Royal Alliance Associates, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
American International Group, Inc.
SIC Code:
6399
CUSIP:
02687478
Document Reference:
IA-5629
Document Details
Legal Case Name
In the Matter of Royal Alliance Associates, Inc.
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
13-Nov-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On November 13, 2020, the SEC instituted settled cease-and-desist proceedings against Royal Alliance Associates, Inc. The Commission stated: "This matter concerns Royal Alliance’s failure to adopt and implement policies and
procedures reasonably designed to prevent unsuitable investments in volatility-linked exchangetraded products (“ETPs”). As a result, the investment adviser representatives of Royal Alliance
(“IARs”) used their discretionary authority over client accounts to buy and hold a complex ETP for
time periods that were inconsistent with the purpose of the product as described in its offering
materials."
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:
$1,953.00
Shared:
Civil Penalty
Individual:
$500,000.00
Shared:
Pre-Judgment Interest
Individual:
$447.29
Shared:
Total Penalty
Individual:
$502,400.29
Shared:
