RBC Capital Markets to Pay Nearly $800K Over Trade Confirmations

FINRA censured RBC and ordered the BD to pay a $375,000 fine and $393,834 to customers.

The matter originated from an investigation of RBC, of an introducing firm for which RBC provided clearing services, and of self-reports filed by the firm in connection with certain of the trade confirmation issues.

According to the order:

• Between 2010 and 2017, RBC sent its institutional customers approximately 570,000 confirmations for fixed income transactions that inaccurately stated that the transactions were executed in an agency capacity, when they were executed in a principal capacity;
• Between 2010 and 2019, RBC sent its institutional customers approximately 370,000 trade confirmations for fixed income transactions, including certain municipal securities transactions, that inaccurately stated that certain transactions that were solicited were unsolicited, and that inaccurately stated that certain transactions that were unsolicited were solicited;
• Between 2008 and 2019, RBC failed to deliver approximately 267,000 trade confirmations to approximately 720 customers that had requested electronic delivery of trade confirmations. For certain customers, RBC failed to collect certain information from clients required to properly configure accounts for electronic delivery; and
• Between 2006 and 2023, RBC failed to send trade confirmations for millions of dividend reinvestment plan (DRIP) transactions in at least 285,000 accounts. RBC did not provide customers with a detailed written description of the DRIP prior to enrollment containing certain disclosures as required. RBC instead confirmed automatic dividend reinvestment pursuant to a DRIP through monthly account statements rather than trade-by-trade confirmations.