The Financial Industry Regulatory Authority has ordered RBC Capital Markets to pay more than $700,000 in fines and restitution for several alleged rules violations, including sending customers wrong trade confirmations.

In a letter of acceptance, waiver and consent (AWC) dated Monday, RBC Capital, of New York, agreed to pay $375,000 for violating certain Municipal Securities Rulemaking Board rules. RBC Capital failed to send written confirmation to customers that complies with MSRB requirements, the agency said.

The firm also agreed to pay $375,000 in restitution to customers. RBC furthermore agreed to censure.

“RBC sent customers inaccurate trade confirmations, failed to send confirmations and failed to reasonably supervise for compliance with confirmation requirements,” the Finra letter said.

RBC also violated rules under the Securities and Exchange Act of 1934, the letter said.

Finra found these infractions after investigating an introducing firm for which RBC provided clearing services. RBC also filed self-reports to Finra about trade confirmation issues.

In detailing one of the infractions, the letter said RBC sent about 940,000 trade “confirmations to customers that contained inaccurate information” between 2010 and 2019. “In addition, between 2006 and 2023, RBC failed to send millions of trade confirmations to customers as required,” according to the letter. For instance, between 2010 and 2017, the firm sent 570,000 trade confirmations to customers that were incorrectly said to be made in an agency capacity rather than a principal capacity. (Principal trades involve a broker selling from its own inventory, where agency trades involve a broker acting as a go-between matching buyers and sellers.) These errors stemmed from miscoding, Finra said.

Finra said that RBC had also violated the Federal Reserve's Regulation T, which pertains to the extension of credit to customers. While broker-dealers can buy securities for customers, the payment in full must be prompt before the customer can sell these securities, otherwise the customer loses privileges.

"Between 2012 and 2016, RBC served as the clearing broker for certain RBC customer accounts and for certain introducing brokers," Finra said. "Certain RBC customers with cash accounts and certain customers of introducing brokers with cash accounts for which RBC was the clearing broker sold securities without previously paying for them in full. However, RBC failed to withdraw from those customers the privilege of delaying payment beyond the trade date for 90 calendar days following the date of sale of the security, as required by ... Regulation T."

The letter noted that the imposition of the restitution or other monetary sanctions doesn’t “preclude customers from pursuing their own actions to obtain restitution or other remedies.”

Representatives for RBC could not be reached by press time.