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
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:
