RBC Capital Markets, LLC – Consent Order S-25-3999-25-CO01
Summary
The Washington State Department of Financial Institutions Division of Securities entered a Consent Order against RBC Capital Markets, LLC for charging unreasonable commissions exceeding 5% of principal trade amounts on equity transactions. Between May 2020 and May 2025, the firm executed 4,109 equity transactions in Washington with unreasonable Minimum Equity Commission charges, totaling $160,510.84. The firm was also found to have failed in its supervisory obligations regarding these commission practices.
“Respondents failed to reasonably supervise certain transactions, which included a Minimum Equity Commission charge, to ensure that customers were charged a reasonable commission.”
Broker-dealers that use Minimum Equity Commission minimums on equity transactions should review whether their charges exceed amounts reasonable for the service performed, particularly where charges of 5% or more of principal trade amounts are applied. The supervisory failure finding here underscores that simply having a commission schedule is insufficient — firms must actively monitor for reasonableness. Washington's explicit use of the 5% threshold as unreasonable in this consent order provides a useful benchmark for compliance review.
What changed
The Consent Order S-25-3999-25-CO01 documents that RBC Capital Markets, LLC violated Washington securities law by charging unreasonable Minimum Equity Commission charges on equity transactions between May 2020 and May 2025. The 4,109 affected transactions resulted in $160,510.84 in unreasonable commissions. The firm also failed to reasonably supervise these transactions to ensure customer charges were reasonable.
Broker-dealers operating in Washington should review their commission structures, particularly Minimum Equity Commission charges, to ensure compliance with RCW 21.20.110 reasonableness standards. Firms should verify that supervisory procedures adequately cover commission reasonableness reviews and that any Minimum Equity Commission charges applied to equity transactions are defensible under Washington law.
What to do next
- Cease and Desist
Penalties
$25,000 fine; $160,610.84 restitution
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
RBC Capital Markets, LLC – Consent Order – S-25-3999-25-CO01
Case summary
On April 2, 2026, the Washington State Department of Financial Institutions Division of Securities entered a Consent Order (S-25-3999-25-CO01) against RBC Capital Markets, LLC.
Order details
Order File: S-25-3999-25-CO01
Laws & Rules: RCW 21.20.110, WAC 460-20C-150
Penalties/Remedies:
- Fines: $25,000
- Restitution: $160,610.84
- Cease and Desist
Findings
- Between May 2020 and May 2025, Respondents took unreasonable commissions (in excess of 5% of the principal trade amount) on equity transactions. In Washington, Respondents executed 4,109 equity transactions that included an unreasonable commission for the service performed, totaling $160,510.84.
- Respondents failed to reasonably supervise certain transactions, which included a Minimum Equity Commission charge, to ensure that customers were charged a reasonable commission.
Order file
Parties
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