| 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 web site at www.njsecurities.gov.
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