RBC Capital Markets was fined $1 million dollars on April 23, 2015 for failing to supervise brokers who were selling unsuitable reverse convertibles to customers.
According to the Letter of Acceptance, Waiver and Consent (AWC) RBC Capital Markets failed to detect the sale of 364 reverse convertible transactions to approximately 218 RBC Capital Markets customers. All of these investments were unsuitable for those customers.
Reverse convertibles are a complex structured product that expose investors to unique risks not associated with other investments. Reverse convertibles typically have limited liquidity and can also lead to loss of principal. As a result, these investments are not suitable for many investors.
RBC Capital Markets recommended these risky products to investors without appropriately considering the investor’s risk tolerance, investment objectives and financial status.
RBC was fined $1 million dollars and ordered to pay $433,989.10 in restitution to the affected customers.
If you have a complaint against RBC Capital Markets or think you were recommended an unsuitable investment by RBC Capital Markets or one of its brokers, call the attorneys at Fitapelli Kurta now for your free consultation.
If you or someone you know has lost money investing with RBC Capital, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.