The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions publication, Royal Bank of Canada (CRD No. 31194) was fined $1,000,000.00 and ordered to pay approximately $434,000.00 in restitution after allegedly selling improper structured investment products to more than 200 investors.
FINRA alleged that between January 2008 and December 2010 Royal Bank of Canada’s capital markets unit failed to adequately supervise 99 of its financial advisors in the sale of 364 reverse convertible securities in 218 accounts that were unsuitable for those customers. The customers involved lost approximately $1.1 million. (See FINRA AWC No. 2010022918701)
FINRA has issued warnings to investors regarding these risky and complex products. A reverse convertible is a structured product that typically consists of a high-yield, short-term note of the issuer that is linked to the performance of an unrelated reference asset, usually common stock, a basket of stocks, an index or another instrument. Reverse convertibles can have complex pay-out structures involving multiple variables that can make it difficult for registered representatives and their customers to accurately assess their risks, costs and potential benefits.
If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.