{"id":1636,"date":"2015-04-30T20:59:45","date_gmt":"2015-04-30T20:59:45","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/04\/rbc_capital_markets_must_pay_1"},"modified":"2022-03-22T14:25:29","modified_gmt":"2022-03-22T19:25:29","slug":"rbc-capital-markets-must-pay-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/","title":{"rendered":"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers Over Unsuitable Reverse Convertible Sales"},"content":{"rendered":"

The Financial Industry Regulatory Authority is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of reverse convertibles <\/a>that were unsuitable for them. The firm must pay them about $434,000 plus a $1 million fine.<\/p>\n

According to the self-regulatory organization, RBC Capital Markets lacked supervisory systems that were reasonably designed to identify transactions that warranted review when the reverse convertibles were sold to customers. This purported inadequacy is s a violation of FINRA’s rules and suitability guidelines.<\/p>\n

Although RBC had guidelines for selling reverse convertibles, specific criteria were established regarding annual income, investment goals, liquid net worth, and investment experience. Because of this, the firm was unable to detect the sale of 364 reverse convertible transactions by 99 of its registered representatives. The transactions involved 218 accounts and they were not suitable for the account holders. The customers lost at least $1.1 million.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of reverse convertibles that were unsuitable for them. The firm must pay them about $434,000 plus a $1 million fine. According to the self-regulatory organization, RBC Capital Markets lacked supervisory systems that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3739,3777,3744],"tags":[],"class_list":["post-1636","post","type-post","status-publish","format-standard","hentry","category-finra","category-inadequate-supervision","category-rbc-capital-markets-corp"],"yoast_head":"\nRBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers — Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"FINRA is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of unsuitable reverse convertibles\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers — Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"FINRA is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of unsuitable reverse convertibles\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers — Investor Lawyers Blog","description":"FINRA is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of unsuitable reverse convertibles","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/","twitter_card":"summary_large_image","twitter_title":"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers — Investor Lawyers Blog","twitter_description":"FINRA is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of unsuitable reverse convertibles","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers Over Unsuitable Reverse Convertible Sales","datePublished":"2015-04-30T20:59:45+00:00","dateModified":"2022-03-22T19:25:29+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/"},"wordCount":447,"articleSection":["FINRA","Inadequate Supervision","RBC Capital Markets Corp."],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/","url":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/","name":"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers — Investor Lawyers Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2015-04-30T20:59:45+00:00","dateModified":"2022-03-22T19:25:29+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"FINRA is ordering RBC Capital Markets to pay restitution to customers for supervisory failures that allowed for the sale of unsuitable reverse convertibles","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/rbc-capital-markets-must-pay-1\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"RBC Capital Markets Must Pay $1M Fine and $434K Restitution to Customers Over Unsuitable Reverse Convertible Sales"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-qo","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/1636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=1636"}],"version-history":[{"count":3,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/1636\/revisions"}],"predecessor-version":[{"id":24906,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/1636\/revisions\/24906"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=1636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=1636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=1636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}