RBC made a string of new advisor hires from rivals last week, but the firm must also pay close to $3 million over alleged failures in sending out fund prospectuses.
In Denver, RBC Wealth Management has added the Santangelo Group, which includes financial advisors Jay Paul Santangelo, Pasha Ghaemi and Foster Manierre as well as registered client associate Kali McFarland, according to a press release from RBC. The team previously managed around $246 million at Merrill Lynch, RBC says. Santangelo has been in the financial services industry for three decades, Ghaemi for five years and Manierre for six, according to the press release.
In Scottsdale, Ariz., meanwhile, RBC has added Bill Herf, a 22-year veteran of the industry, the company says in a separate press release. Herf previously managed around $230 million for 150 families and foundations at Stifel Nicolaus, Stifel Financial’s broker-dealer subsidiary, RBC says.
“I was impressed with RBC’s ability to provide all of the investment solutions and clear, concise planning to lead our clients to success, while maintaining a positive and inviting small-firm culture that also understands the importance of giving back to our community,” Herf says in the press release.
Finra, meanwhile, has ordered RBC Capital Markets to pay $2.9 million over allegedly failing to deliver hundreds of thousands of prospectuses on mutual funds, exchange traded funds and exchange traded notes, according to a letter of acceptance, waiver and consent published by the industry’s self-regulator.
From March 2008 to June 2016, the company allegedly lacked an adequate supervisory system to comply with the rules of prospectus delivery, instead relying on a single employee manually inputting codes to trigger delivery, Finra says.
The employee allegedly inadvertently triggered an overwrite of the codes and failed to identify new ETFs and ETNs that required a trailer code, according to the regulator. Moreover, upon discovering the coding errors in June 2015, RBC still allegedly failed to effectively address the issue, Finra says. The fate of the employee is unclear.
RBC consented to the fine and a censure, as well as to set up an adequate supervisory system and written procedures on prospectus delivery, without admitting or denying Finra’s findings, according to the letter of acceptance.