RBC—Failure to Establish Adequate Supervisory Systems

investment fraud lawyersRBC Allegedly Failed to Establish Adequate Supervisory Systems Regarding Reverse Convertibles Which Incurred $1.1 Million in Customer Losses

RBC, between 2008 and 2012, allegedly failed to have supervisory systems in place and procedures reasonably designed to ensure compliance with applicable securities laws and regulations, according to a FINRA Letter of Acceptance, Waiver and Consent (AWC).

In addition, the AWC further alleges, RBC failed to make proper regulations regarding its internal guidelines concerning the suitability of reverse convertibles. RBC’s supervisory system and procedures did not adequately identify transactions for responsible supervisory personnel when reverse convertibles were sold to customers in violation of RBC’s suitability guidelines, the AWC also notes.

RBC Supervisors Allegedly Failed to Detect Sale by 99 Reps of Approximately 364 Reverse Convertibles; Fined $1m and Ordered to Pay $400k in Restitution

Between 2008 and 2012 RBC supervisors allegedly failed to detect the sales of 99 of its registered representatives regarding approximately 364 reverse convertible transactions concerning approximately 218 customer accounts that were unsuitable for said customers, according to the AWC.

These customers, the AWC notes, allegedly incurred losses totaling at least $1.1 million. Hence, RBC violated NASD and FINRA Rules. Hence, RBC has been fined $1m and ordered by FINRA to pay $400k in restitution.

The Peiffer Rosca Wolf Investment Recovery Lawyers Often Represent Investors

The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of broker-dealers with inadequate supervisory systems. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of broker-dealers with inadequate supervisory systems may contact the investment recovery lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1157 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.