RBC Capital Markets

Kurta Law is investigating investment recommendations by brokers from RBC Capital Markets (CRD#: 31194). Investors should be aware that the firm has faced fines from the SEC and FINRA and works with brokers who have investor disputes on their records. The firm’s main address is in New York, New York. 

RBC Capital Markets has done business under 11 other names, including:

• Dain Rauscher Inc.
• Regional Operations Group
• RBC Wealth Management
• RBC Dain Rauscher Inc.
• RBC Dain Rauscher
• RBC Correspondent Services
• RBC Clearing and Custody
• RBC Capital Markets Corporation
• RBC Advisor Services
• Interra Clearing Services

Fees and Conflicts of Interest

RBC Capital Markets operates as both a broker-dealer and an investment advisory firm and discloses the fees and conflicts of interest associated with both types of business in its Client Relationship Summary (CRS).

• Investors will be charged commission fees either upfront or continuously for as long as they hold an investment.
• RBC Capital Markets will mark securities up or down to make a profit on transactions you make with the firm directly. The relative profit they receive incentivizes the firm to recommend their own securities over facilitating trades with third parties.
• Certain managers and sponsors of investments may also share the revenue earned from certain investments with RBC Capital Markets, namely mutual funds and variable annuities.
• RBC Capital Markets generates more revenue from high-volume or high-frequency trading in brokerage accounts, incentivizing the firm to recommend advisory accounts to transfer their assets.
• Investors with infrequent trades or low-commission investments in their investment advisory account may be encouraged to open a brokerage account, which would earn the firm more revenue.
• Investment advisory accounts face a Program Fee that is typically calculated based on the value of the assets in the account. This encourages the firm to recommend that you increase your assets.

Broker-Dealer Services

Besides stocks and bonds, RBC Capital Markets offers the following investment vehicles. Investors should be aware that these products can be high-risk:

• Mutual funds
• Exchange-traded products (ETPs), such as exchange-traded funds (ETFs) and exchange-traded notes
• Options
• Fixed-income securities
• Certificates of Deposit (CDs)
• Unit investment trusts (UITs)
• Structured notes
• Variable annuities
• Variable life insurance

Regulatory Actions

RBC Capital Markets’ detailed BrokerCheck record reveals that the firm has been the subject of several regulatory actions in recent years.

SEC Censure and Fine

On August 14, 2024, the Securities and Exchange Commission censured RBC Capital Markets, alleging that firm personnel violated requirements for recording certain communications by transmitting them through unapproved channels.

In addition to censure and an order to cease and desist in these alleged violations, the SEC fined RBC Capital Markets $45 million.

FINRA Censure and Fine

On July 2, 2024, RBC Capital Markets consented to the entry of findings that the firm allegedly failed to provide some investors with mutual fund sales charge waivers and fee rebates, resulting in $264,939.44 in excess charges and fees.

The firm was censured by FINRA and fined $75,000. You can read the Letter of Acceptance, Waiver & Consent here.

Failure to Supervise: FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

Alleged Failure to Send Trade Confirmations

In an AWC filed on April 9, 2024, RBC Capital Markets consented to the entry of findings that it allegedly sent trade confirmations containing inaccurate information to investors.

More specifically, the AWC alleges that fixed-income transaction confirmations incorrectly stated that the firm executed them as an agency rather than as the principal and that other trade confirmations were incorrectly labeled as solicited when they were, in fact, unsolicited. Unsolicited trades receive more supervisory scrutiny, creating an incentive for unscrupulous brokers to mislabel risky trades. 

The firm allegedly also failed to send other trade confirmations, such as for Dividend Reinvestment Program (DRIP) transactions.

FINRA censured the firm, issued a fine of $375,000, and ordered the firm to pay $393,833.50 in restitution. You can access the AWC here.

Alleged Overreporting of Shares

On July 11, 2023, FINRA alleged in an AWC that RBC Capital Markets mistakenly overreported the number of shares associated with certain short interest positions by 697 million and failed to establish a supervisory system designed to ensure the accuracy of its short interest reporting.

RBC Capital Markets was censured and fined $250,000. You can read the AWC here.

Alleged Broker Misconduct

Kurta Law is aware of the following current or former brokers associated with RBC Capital Markets with records of investor disputes, but this is not an exhaustive list. If you have concerns about your broker’s conduct, contact a securities attorney.

• John Germain: https://www.kurtalawfirm.com/blog/john-germain/ 
• Stanley Crisci: https://www.kurtalawfirm.com/blog/stanley-crisci/ 
• Matt Haverty: https://www.kurtalawfirm.com/blog/matt-haverty/ 
• John Micera: https://www.kurtalawfirm.com/blog/john-micera/ 
• Rebecca Glasgow: https://www.kurtalawfirm.com/blog/rebecca-glasgow/ 
• Nicole Bailey: https://www.kurtalawfirm.com/blog/nicole-bailey/ 
• Gene West: https://www.kurtalawfirm.com/blog/gene-west/ 
• Leslie Lauer: https://www.kurtalawfirm.com/blog/leslie-lauer/ 

Kurta Law Can Help

Investors who lost money working with an RBC Capital Markets broker should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.