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RBC To Pay $3M For Investor Losses On Risky ETFs

Law360, New York (May 2, 2012, 7:10 PM EDT) -- RBC Capital Markets LLC has agreed to pay $2.9 million to U.S. investors for losses on complex nontraditional exchange traded funds they allegedly bought without understanding the products or their risks, Massachusetts securities regulators said Wednesday.

The agreement settles an administrative complaint, initiated by the Massachusetts Securities Division in July, that the Canadian investment bank sold leveraged, inverse and inverse-leveraged ETFs to investors without providing them with an understanding how they functioned or how long they should be held.

The bank was also fined $250,000 for...
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