Rbc Private Counsel (Usa) Inc.

Allegations: ROYAL BANK OF CANADA IS ALLEGED TO HAVE VIOLATED SECTION 4C(A) OF THE COMMODITY EXCHANGE ACT, AND COMMISSION REGULATION 1.38(A), BY KNOWINGLY ENTERING INTO PURCHASES AND SALES OF SINGLE STOCK FUTURES AND NARROW-BASED INDEX FUTURES CONTRACTS OPPOSITE ITS SUBSIDIARIES WITH THE EXPRESS OR IMPLIED UNDERSTANDING THAT THE POSITION WOULD BE OFFSET OR DELIVERED OPPOSITE EACH OTHER. Status: Final Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT VIOLATED SECTION 4C(A) OF THE COMMODITY EXCHANGE ACT, AND COMMISSION REGULATION 1.38(A), BY KNOWINGLY ENTERING INTO PURCHASES AND SALES OF SINGLE STOCK FUTURES AND NARROW-BASED INDEX FUTURES CONTRACTS OPPOSITE ITS SUBSIDIARIES WITH THE EXPRESS OR IMPLIED UNDERSTANDING THAT THE POSITIONS WOULD BE OFFSET OR DELIVERED OPPOSITE EACH OTHER; THEREFORE THE FIRM IS FINED $35,000,000.00 AND IS PERMANENTLY RESTRAINED, ENJOINED, AND PROHIBITED FROM DIRECTLY OR INDIRECTLY ENTERING INTO OR CONFIRMING THE EXECUTION OF A TRANSACTION THAT IS, IS OF THE CHARACTER OF, OR IS COMMONLY KNOWN TO THE TRADE AS WASH SALE, OR IS A FICTITIOUS SALE. THE FIRM IS ALSO PERMANENTLY RESTRAINED, ENJOINED, AND PROHIBITED FROM DIRECTLY OR INDIRECTLY EXECUTING ANY NON-COMPETITIVE TRANSACTION.

Allegations: FAILURE TO HAVE SUFFICIENT SUPERVISION AND CONTROLS IN ITS FX TRADING BUSINESS. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, ROYAL BANK OF CANADA CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF THE FINDINGS. Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, ROYAL BANK OF CANADA CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF THE FINDINGS.

Allegations: MS. FAIRCLOUGH WAS ALLEGED TO HAVE CONTRAVENED THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC) RULES, NAMELY THAT, (1) SHE ACTED AS A POA FOR A CLIENT BETWEEN JANUARY 2019 AND JULY 2020 CONTRARY TO RULE 43.2(5)(I), AND (2) SHE ACCEPTED A $50,000 GIFT FROM A CLIENT IN JANUARY 2019 CONTRARY TO RULE 43.2(1). Status: Final Sanction Detail: AS PART OF THE SETTLEMENT, MS. FAIRCLOUGH AGREED TO PAY A SUM OF $22,500 BECAUSE SHE ACCEPTED IIROC STAFF'S EARLY RESOLUTION OFFER. THE SUM PAID CONSISTS OF TWO PARTS: A FINE OF $17,500 AND COSTS OF $5,000. Summary: AS PART OF THE SETTLEMENT, MS. FAIRCLOUGH AGREED TO PAY A SUM OF $22,500 BECAUSE SHE ACCEPTED IIROC STAFF'S EARLY RESOLUTION OFFER. THE SUM PAID CONSISTS OF TWO PARTS: A FINE OF $17,500 AND COSTS OF $5,000.

Allegations: THE ADVISORY AFFILIATE VIOLATED IIROC DEALER MEMBER RULE 38.4 BY FAILING TO ADEQUATELY SUPERVISE A REGISTERED REPRESENTATIVE ("RR") TO ENSURE THAT THE RR'S RECOMMENDATION TO HIS CLIENTS TO PURCHASE CERTAIN INVERSE EXCHANGE-TRADED FUNDS WAS SUITABLE FOR THOSE CLIENTS AND, AS A RESULT, THE ADVISORY AFFILIATE FAILED TO ADEQUATELY FULFILL HIS RESPONSIBILITIES TO SUPERVISE THE RR. Status: Final Sanction Detail: A SUSPENSION AND PROHIBITION ON THE ADVISORY AFFILIATE BECOMING A SUPERVISOR FOR SIX MONTHS AND A REQUIREMENT THAT THE ADVISORY AFFILIATE RE-WRITE THE SUPERVISORS COURSE BEFORE AGAIN BECOMING A BRANCH MANAGER. A MONETARY FINE OF CDN$20,000 WAS IMPOSED. Summary: FOLLOWING A PENALTY HEARING HELD ON JULY 9, 2015, A HEARING PANEL OF THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC) IMPOSED THE FOLLOWING PENALTIES ON THE ADVISORY AFFILIATE: (A) A FINE OF $20,000; AND (B) A REQUIREMENT THAT THE ADVISORY AFFILIATE RE-WRITE THE SUPERVISORY EXAM BEFORE SEEKING APPROVAL FOR PROMOTION.

Allegations: FAILURE TO MAKE AND KEEP BOOKS, RECORDS, AND ACCOUNTS, WHICH, IN REASONABLE DETAIL, ACCURATELY AND FAIRLY REFLECT THE TRANSACTIONS AND DISPOSITIONS OF THE ASSETS OF THE ISSUER. FAILURE TO DEVISE AND MAINTAIN A SYSTEM OF INTERNAL ACCOUNTING CONTROLS SUFFICIENT TO PROVIDE REASONABLE ASSURANCE THAT TRANSACTIONS ARE RECORDED TO PERMIT PREPARATION OF FINANCIAL STATEMENTS IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE ENTRY OF THE ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS AND IMPOSING A CEASE-AND-DESIST ORDER Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE ENTRY OF THE ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS AND IMPOSING A CEASE-AND-DESIST ORDER