RBC to Pay $30.4 Million Over Wisconsin Investment Sales

Andrew Ackerman & Joan Solsman:

The Securities and Exchange Commission said the corporate and investment-banking arm of Royal Bank of Canada agreed to pay $30.4 million to settle charges it inappropriately sold unsuitable investments to five Wisconsin school districts.
The settlement, disclosed Tuesday, with the SEC comes as the agency is stepping up its probe into complex derivatives transactions at the heart of the financial crisis. The school district case is the latest to arise out of those efforts, SEC officials said.
“This unit has brought several cases and there will still be some more to come,” said Kenneth Lench, chief of the SEC enforcement division’s structured- and new-products unit, which jointly investigated the matter with a separate municipal securities-enforcement team.