RBC unit to pay US$2.5 million to SEC in relation to 2011 Rural/Metro sale
TORONTO – The U.S. Securities and Exchange Commission says a unit of Royal Bank (TSX:RY) has agreed to pay US$2.5 million in relation to inaccuracies in a proxy statement for the sale of Rural/Metro Corp. in 2011.
The securities watchdog says RBC Capital Markets, which was the lead adviser to the ambulance company, caused materially false and misleading disclosures that made the bid look more attractive.
By settling the case, RBC Capital Markets is neither admitting nor denying the findings of the SEC’s investigation.
RBC was paid $500,000 for presenting its opinion on the potential sale of Rural/Metro to a private equity firm to the ambulance company’s board.
The SEC says the false and misleading statements made by RBC made their way into a proxy statement filed by Rural/Metro to get shareholder approval for the sale.
A spokeswoman for RBC Capital Markets said the company is pleased to resolve the matter.
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