Del. AG announces $33,000 settlement with RBC Capital Markets

By Bryan Cohen | Nov 8, 2013

WILMINGTON, Del. (Legal Newsline) -- Delaware Attorney General Beau Biden announced Thursday a $33,520.17 settlement with RBC Capital Markets LLC to resolve allegations the company let its client associates sell securities without being registered.

Biden's Investor Protection Unit and state securities regulators from Vermont, Texas, New Jersey, New Hampshire, Missouri and Colorado looked into the practices of RBC.

The states alleged that RBC client associates were able to accept trade orders from clients, an act that legally requires registration in both the client associate's home state and the client's state.

RBC's client associates allegedly failed to properly register and RBC's systems were allegedly not reasonably designed to prevent the acts from occurring.

In Delaware, all individuals who sell stocks and securities to Delaware investors must register with Biden's Investor Protection Unit.

"We will continue to ensure that the securities market in Delaware adequately protects investors," the attorney general said in a statement. "This settlement holds RBC accountable for its failures to keep track of its employees who sell investments to Delawareans."

Under the terms of the agreement, RBC will pay Delaware $33,520.17 and establish and maintain systems that require client associates to be properly registered in Delaware and other states.

The Investor Protection Unit seeks to protect the public from potentially unscrupulous, fraudulent or overreaching practices of entities offering investments or investment services within Delaware.

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