RBC Capital Markets, LLC (RBCCM) is a broker-dealer and registered investment adviser (RIA) headquartered in New York, New York. RBCCM has origins dating back to 1901, when it was originally founded as Dominion Securities Corporation Limited. In 2022, the firm had $9.1B in revenue, with $2.9B in net income. Globally, RBCCM has 6,400+ professionals at 63 offices in 18 countries. The firm also has 16,500+ clients in over 100 countries. Its brokers are licensed in all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at RBC Capital Markets, LLC
RBCCM is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
RBCCM and brokers backed by RBCCM have a long history of misconduct. According to FINRA’s BrokerCheck report, the firm has 469 disclosures (346 regulatory events; 2 civil events; 114 arbitrations; and 7 bonds). The firm had six regulatory events in 2022 alone.
On January 12, 2022, RBCCM paid a fine of $2.6M to FINRA. From January 2014 to December 2018, the firm failed to report OTC options positions in violation of a FINRA rule. This resulted in errors in the reporting logic of RBCCM’s internal risk system, which the firm failed to detect for years.
In October 2022, FINRA initiated a claim against RBCCM, finding that the firm lacked a supervisory system reasonably designed to review paper statements from employees’ outside brokerage accounts in a timely manner. RBCCM had no designated timeframe to track, reconcile, and review statements. This led to a backlog of approximately 8,950 unreviewed account statements. The firm also lacked procedures for following up on missing statements. RBCCM was censured and fined $360,000.
Other reasons why RBCCM has been fined over the years include:
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