The regulator said an investigation into RBC’s sales practices and procedures revealed that between November 2006 and July 2008 the company made a number of serious failings around the sale of unauthorized products.
Failings included a lack of due diligence on the funds, inadequate training for sales staff, poor record-keeping in relation to due diligence and product sales as well as poor management of more senior staff.
In a statement, the regulator said, as well as the fine, RBC had agreed to make repurchase offers to all “eligible” customers at a price equal to 100% of the principal amount invested, pay compensation to eligible former customers and will implement enhanced complaints procedures.
The SFC’s executive director of enforcement Mark Steward said: “Concerns over misconduct, like the ones in this case, test the values of organisations. The response to problems is often a much better indicator of an organisation’s integrity and values than the fact of the problem itself. RBC responded to our concerns immediately for the benefit of its customers and passed this test.”
