RBC Capital Markets: Lawsuit Investigation, Regulatory Review

RBC Capital Markets Lawsuits, Regulatory Sanctions & Customer Complaints

The White Law Group reviews broker-dealer RBC Capital Markets for regulatory violations, investor complaints, and potential lawsuits.

RBC Capital Markets, LLC (CRD#: 31194 / SEC#: 801-13059, 8-45411), a dual-registered broker-dealer and investment advisory firm, is headquartered in New York, NY. The firm employs approximately 6,000 registered representatives across 322 branch locations.

According to FINRA’s BrokerCheck, RBC Capital Markets reportedly has 487 disclosure events listed on its broker report, including regulatory sanctions, arbitration awards, and civil judgments. These disclosures often relate to supervisory failures, excessive commissions, unsuitable investment recommendations, and customer disputes.

Regulatory Sanctions Against RBC Capital Markets

June 4, 2025 – Massachusetts Sanction for Excessive Commissions
The Massachusetts Securities Division sanctioned RBC Capital Markets for charging unreasonable commissions on certain equity transactions and failing to supervise its brokers adequately. The firm agreed to:

• A $25,000 fine
• Restitution with interest
• A cease-and-desist order
• Revisions to supervisory procedures and compliance systems

August 14, 2024 – SEC Fines RBC $6.6 Million for Recordkeeping Failures
The SEC sanctioned RBC for widespread recordkeeping violations, allowing employees—including executives—to use unauthorized communication channels such as personal text messages. The firm agreed to:

• Pay a $6.6 million civil penalty
• A cease-and-desist order
• Revisions to its compliance protocols

July 1, 2024 – Mutual Fund Overcharges
RBC was fined $75,000 by FINRA after it reportedly failed to provide fee waivers and sales charge rebates for mutual fund transactions, costing clients nearly $265,000 across 1,450 accounts.

May 1, 2024 – Inaccurate Trade Confirmations
FINRA fined RBC Capital Markets nearly $800,000 for allegedly issuing inaccurate trade confirmations and violating Regulation T between 2010 and 2019. The firm agreed to pay:

• $375,000 in fines
• $393,834 in restitution

April 2023 – Unsuitable Short-Term Trading
RBC was fined $300,000 and ordered to pay over $780,000 in restitution and disgorgement for allegedly recommending unsuitable short-term trades of syndicate preferred stocks to retail clients.

September 2021 – SEC Charges in Municipal Bond Offerings
RBC agreed to pay over $800,000 in penalties and disgorgement for allegedly improper bond allocations to “flippers,” violating retail priority rules in municipal offerings.

Broker Misconduct Allegations Involving RBC Financial Advisors

April 2024 – Scott Matalon Barred by FINRA
Matalon was barred after reportedly refusing to cooperate in an investigation involving unauthorized withdrawals from a deceased client’s account, excessive fees, and unsuitable investments. Settlements included:

• $50,000 (first complaint)
• $500,000 (second complaint)

March 2022 – Paul Ronald Koch Barred for Fraud
Koch was barred for allegedly recommending risky outside investments and diverting funds for personal use. He had multiple customer disputes with allegations of fraud and unsuitable investments.

August 2022 – Unauthorized Trading
An RBC broker reportedly executed 432 unauthorized transactions in client accounts without written authorization, violating NASD and FINRA rules.

Investor Complaints & FINRA Arbitration Awards

September 2017 – $212,000 FINRA Award to Elder Abuse Victim’s Estate
A FINRA panel awarded $212,000 to the estate of an elderly client after RBC was accused of negligence and unauthorized trading. RBC denied the allegations, and its counterclaim for legal fees was dismissed.

Other Regulatory Failures by RBC Capital Markets

• December 2021: $550,000 fine for supervisory failures related to high-yield bond recommendations
• December 2020: $685,520 restitution for improper 529 plan share class recommendations
• April 2020: Over $3.25 million in fines and disgorgement for selling more expensive mutual fund share classes to clients without disclosing conflicts of interest

Failure to Supervise and Broker Liability

Broker-dealers like RBC Capital Markets have a duty to supervise their registered representatives and ensure compliance with securities laws and industry rules. When supervision fails, investors may suffer financial losses due to misconduct such as:

• Unsuitable investments
• Unauthorized trading
• Misrepresentation or omission of material facts
• Excessive commissions and fees

In such cases, firms like The White Law Group may help investors recover losses through FINRA arbitration.

How to Recover Investment Losses with RBC Capital Markets

If you suffered losses investing with RBC Capital Markets, or suspect misconduct by your financial advisor, you may be able to file a FINRA arbitration claim for recovery.

The White Law Group, LLC is a national securities arbitration and investor protection law firm with offices in Seattle and Chicago. With over 30 years of experience and more than 800 FINRA claims handled, we represent investors nationwide in claims involving:

• Stock fraud
• Churning
• Unsuitable investments
• Selling away
• Unauthorized trading

For a free consultation, call (888) 637-5510.

Frequently Asked Questions (FAQs)

What are common investor complaints against RBC Capital Markets?
Investors have filed complaints for unauthorized trading, suitability violations, excessive commissions, and misrepresentation. The firm and its brokers have faced disciplinary actions for these and similar violations.

Can I sue RBC Capital Markets to recover investment losses?
If your financial advisor at RBC Capital Markets mismanaged your investments, you may be eligible to file a FINRA arbitration claim, which is the typical legal avenue for disputes with brokerage firms. An experienced securities attorney can help evaluate your claim.

How many regulatory disclosures does RBC Capital Markets have?
According to FINRA’s BrokerCheck, RBC Capital Markets has 487 disclosure events, including 246 regulatory events. These include FINRA and SEC sanctions, customer disputes, and arbitration awards.

To learn more about RBC Capital Markets’ regulatory history, visit FINRA’s BrokerCheck.