A financial services company that overcharged Minnesotans for equity transactions over a period of five years is being compelled by the Minnesota Department of Commerce to pay restitution of more than $242,000 to thousands of customers.
The department formally censured RBC Capital Markets LLC (RBC) on May 21, according to a June 1 announcement. The enforcement action concluded a multi-state investigation into the company's practice of charging unreasonably high commissions on equity transactions between May 16, 2020, and May 16, 2025.
Minnesota law limits how much financial firms can charge customers in commissions. State regulators say RBC charged customers too much on 6,324 equity transactions, totaling more than $242,000 in excessive commissions. Regulators also allege the company failed to properly oversee those transactions to make sure customers were charged fairly.
As part of the settlement agreement, RBC must repay customers, plus interest for transactions where it charged unreasonably high commissions.
“People should not have to be financial experts to be treated fairly. When Minnesotans place their trust in a financial institution, they deserve honesty, transparency about fees and confidence that the rules are being followed,” Department of Commerce Commissioner Grace Arnold said in a press release. “Our job is to protect consumers and step in when financial institutions fail to meet those obligations.”
“Minnesotans who invest their hard-earned money deserve full value for every dollar they commit. Consumers should not have to navigate complex financial laws on their own or wonder whether they were charged improperly after the fact,” Sara Payne, assistant commissioner over the Department of Commerce’s Enforcement Division, said in a press release. “When firms fail to follow the law, our investigators intervene to safeguard investors and maintain trust in the marketplace.”
Minnesota regulators advise consumers to read their financial statements carefully and ask their advisor or broker if anything seems suspicious. The Department of Commerce’s Enforcement Division can also be contacted with concerns or complaints.