Skip to main content

Outside the Royal Bank of Canada office tower in Toronto’s Financial District.Fred Lum/The Globe and Mail

Royal Bank of Canada was fined $1-million and ordered to pay about $434,000 in restitution by a Wall Street regulator over sales of reverse convertible securities.

Royal Bank's capital-markets unit failed to adequately supervise the sale of 364 transactions in 218 accounts that were unsuitable for those customers, the Financial Industry Regulatory Authority said Thursday in a statement. Reverse convertibles are interest-bearing notes in which repayment of principal is tied to the performance of an underlying asset, such as a stock or basket of stocks.

RBC Capital Markets didn't admit or deny the charges, according to the statement.