RBC Capital Markets Pays Civil Penalty and Revises Its Supervisory
System, Under Settlement with Division of Consumer Affairs'
Bureau of Securities
NEWARK – RBC Capital Markets, LLC, has agreed to pay $48,690.17 in civil penalties
to the New Jersey Bureau of Securities, to settle an investigation into unregistered
personnel accepting unsolicited orders for the purchase and sale of securities.
RBC employed "client associates" who accepted orders from clients without being
registered with the Bureau. RBC also failed to adequately monitor the registration
status of these client associates who accepted client orders.
"RBC's conduct violated the state's Uniform Securities Law, as only personnel
registered with our Bureau of Securities can legally accept client orders," Acting
Attorney General John J. Hoffman said. "RBC cooperated with the Bureau and has
since implemented enhancements to its supervisory system to ensure future violations
do not occur."
The investigation began in 2009 as part of a multi-state investigation, coordinated by the
North American Securities Administrators Association. RBC settled the multi-state
investigation by agreeing to pay up to a total of $2.8 million in civil monetary penalties
among the 50 states, District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
RBC entered into the settlement with the Bureau without admitting or denying the
findings of fact and conclusions of law.
"Proper supervision of personnel is a key responsibility of investment firms," said Amy
G. Kopleton, Acting Chief of the New Jersey Bureau of Securities. "The Bureau will
hold firms accountable for these lapses in supervision."
Investigator Peter C. Cole conducted the RBC investigation on behalf of the Bureau.
The Bureau can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-
446-8378) or from outside New Jersey at 973-504-3600. The public is encouraged to
visit the Bureau's website at www.NJSecurities.gov.