FINRA Fines RBC Capital $300k for Failing to Disclose Reps' Unsatisfied Liens and Judgments

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FINRA censured and fined RBC Capital Markets, LLC $300,000 for failing to update industry forms to reflect its representatives' unsatisfied liens and judgments. The regulator also charged RBC with failing to establish a supervisory system to review wage garnishment orders for reportable events.

FINRA AWC #2013039474902

According to the findings, RBC Capital failed to file an amendment to 26 representatives' Form U4 to reflect wage garnishment orders from courts and tax authorities for those 26 representatives. In 15 other instances (for a total of at least 41 distinct violations), RBC allegedly failed to file timely amendments, which FINRA rules state shall be within 30 days of discovery of the facts or circumstances. Instead, those late filings purportedly occurred "several months" after the underlying event.

FINRA also admonished RBC Capital for failing to establish a supervisory system designed to review wage garnishment orders for reportable events, writing that written supervisory procedures were not in place to ensure that RBC's payroll department notified compliance or supervisory personnel regarding a garnishment order.

Investigators concluded that, "As a result, RBC failed to disclose, or timely disclose, unsatisfied judgments and liens of which it had notice by reason of the garnishment actions, as further described above."

If you have invested with RBC Capital Markets or with any firm, broker or financial adviser with undisclosed liens, judgments, wage garnishment orders, or other financial events that could pose a conflict of interest has proven harmful to your investments or financial position, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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