National investment loss lawyers KlaymanToskes report that the Financial Industry Regulatory Authority (“FINRA”) has censured RBC Wealth Management-U.S. and ordered the brokerage firm to pay $75,000 for failing to ensure that fee waivers were properly applied on certain mutual fund purchases.
According to FINRA’s investigation, from January 2016 to December 2023, RBC Wealth Management brokers failed to waive fees on funds that were subject to a “right of reinstatement,” where the fund company does not charge an upfront commission when a customer sells one fund and purchases another within the same family. This lapse in supervision resulted in nearly $265,000 in reimbursements to affected customers.
FINRA found that RBC Wealth Management lacked adequate supervisory systems to ensure that brokers were adhering to the fee waiver policies and making recommendations in the best interest of their clients. This failure violated FINRA’s FINRA’s Rules 3110 and 2010, which require firms to maintain high standards and reasonable supervisory systems.
KlaymanToskes previously reported in April 2023 that RBC Wealth Management was ordered to pay over $1 million by FINRA for failing to supervise its representatives’ short-term and excessive trading/“churning” of syndicate preferred stock investments. In April 2020, RBC also agreed to pay $3.88 million to settle SEC charges related to recommendations of more expensive share classes of mutual funds to investors when cheaper options of the same fund were available.
If you suffered losses due to unnecessary fees or unsuitable investment recommendations at RBC Wealth Management, and/or have concerns regarding your investment portfolio, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss your recovery options.
According to FINRA, brokerage firms such as RBC Wealth Management are responsible for the supervision of all of the activities of their registered financial advisors. Investors may be entitled to a financial recovery if their firm failed to supervise the representative managing their account, and/or if their financial advisor made unsuitable investment recommendations.
Brokers/investment advisors and their firms are responsible for providing suitable investment advice and must act in the best interest of their customers. Further, Investment firms may be held liable for any losses incurred by their customers in the event of fraudulent or unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector. Further, potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products.
If you have been charged unnecessary fees by RBC Wealth Management, or have suffered losses due to unsuitable investment recommendations, contact KlaymanToskes at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com