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: 34-93042

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 Sections 15(b), 15b(c) and 21c of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date 17-Sep-2021
Document Format Administrative Proceeding
File Number 3-20568
Allegation Type Municipal Securities & Public Pensions
Document Summary On September 17, 2021, the SEC instituted settled administrative and cease-and-desist proceedings against RBC Capital Markets, LLC stating: "This matter involves improper conduct by RBC in connection with certain negotiated new issue municipal bond offerings. Between January 2014 and December 2017 (“the relevant period”), RBC, when acting as sole underwriter or senior syndicate manager in negotiated offerings, undertook to allocate bonds according to an internal “standard methodology,” in the absence of different instructions from issuers. The firm’s standard methodology required RBC to fill all orders for customers and all dealer orders for RBC, syndicate members and other broker-dealers before allocating bonds to unregistered brokers known as “flippers.” However, RBC did not always follow the standard methodology when it did not have priority instructions from issuers and, in forty-one instances when orders exceeded the bonds available, it failed to prioritize institutional customer and/or dealer orders ahead of flipper orders."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:

Disgorgement

Individual:     $552,440.00 Shared:    

Civil Penalty

Individual:     $150,000.00 Shared:    

Pre-Judgment Interest

Individual:     $160,886.97 Shared:    

Related Documents:

2021-179 17-Sep-2021 Press Release--Administrative Proceeding
RBC Charged With Failing to Give Priority to Retail and Institutional Investors in Municipal Offerings
The SEC "announced that RBC Capital Markets LLC has agreed to pay more than $800,000 to resolve charges that it engaged in unfair dealing in municipal bond offerings. The SEC also announced settled charges against Kenneth G. Friedrich, RBC's former head of Municipal Sales, Trading and Syndication, and Jaime L. Durando, the head of RBC's municipal syndicate desk."

Related Actions:

In the Matter of Kenneth G. Friedrich
In the Matter of Jaime L. Durando