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."