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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
  • More ETF Problems--RBC Capital Markets Pays $3 Million 0 comments
    May 4, 2012 1:22 PM

    RBC Capital Markets, the brokerage unit of Royal Bank of Canada (NYSE:RBC) agreed to pay investors $2.9 million to cover losses on leveraged and inverse leveraged exchange traded funds to settle an action brought by Massachusetts securities regulators who found that highly volatile, nontraditional funds did not fit with some clients' investment objectives. In addition, the firm was fined $250,000.

    "This settlement details an inexcusable set of facts where the company was selling products it did not understand, and when it finally realized the risk and pitfalls of these investments it did not immediately restrict their marketing," Mr. Galvin, a Massachusetts regulator, said.

    A related action against agent Michael Zukowski, who left RBC in November 2010 has not been resolved.

    Leveraged and inverse ETFs ampligy short-term market movements daily using sophisticated securities known as derivatives and are not generally suitable for anyone except professional traders with a high risk profile.

    We have warned about these investments in the past, here and here, as has the SEC.

    If you have suffered losses on exchange traded funds, ETFs, you may be able to recover those losses. We have been helping investors recover stock market losses for over twenty years.

    Nationwide representation.
    Free consultation.
    561 391 1900

    Rex Securities Law

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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