April 23, 2015
RBC Capital Markets , entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from 2008 through 2012 the firm failed to have in place a supervisory system reasonably designed to ensure compliance with applicable securities laws and internal guidelines concerning the suitability of reverse convertibles.
Reverse Convertibles typically consist of interest-bearing notes in which repayment of principal is tied to the performance of an unrelated asset, such as a basket of stocks. According to FINRA, RBC handled over 100,000 reverse convertible transactions in 5,000 accounts, but failed to ensure that the recommendations were suitable based upon customers’ investing goals, income, net worth and experience.
RBC was assessed a fine of $1,000,000 and the payment of $434,000 in restitution to customers suffering losses on the investments.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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