RBC Unit To Pay SEC $863K Over Muni Bond 'Flippers' Claims

By Dean Seal (September 17, 2021, 5:41 PM EDT) -- RBC Capital Markets LLC has agreed to pay the U.S. Securities and Exchange Commission $863,000 to resolve claims related to its dealings with unregistered brokers known as "flippers" who resold municipal bonds at a profit, while two top traders also reached related settlements with the agency.

The SEC alleged Friday that while acting as the sole underwriter or senior syndicate manager for municipal bond offerings between 2014 and 2017, the American subsidiary of the Royal Bank of Canada improperly allocated bonds to flippers ahead of institutional customer or dealer orders.

RBC also, in three instances, prioritized flipper orders over retail customer...

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