RBC Capital Markets Broker Paul R. Meyer Suspended for Discretion Violations

RBC Capital Markets broker Paul R. Meyer (CRD #3062534) has agreed to a six-week suspension and a $5,000 fine after the Financial Industry Regulatory Authority (FINRA) alleged that he placed 334 unauthorized discretionary trades in customer accounts. The allegations were resolved through a Letter of Acceptance, Waiver and Consent (AWC), which states that the trades occurred between September 2021 and February 2024 without the written authorization required for discretionary activity.

Pattern of Alleged Unauthorized Discretionary Trading

According to the AWC, Meyer executed trades in 45 accounts belonging to 32 customers without speaking to those customers on the days the transactions occurred. FINRA states that although Meyer discussed trading generally with clients, none of the affected accounts were authorized for discretionary trading.

The AWC outlines several key findings:

• No customer had provided written authorization permitting Meyer to exercise discretion in their accounts.
• RBC Capital Markets had not designated the accounts as discretionary, as required for this type of trading activity.
• Meyer nevertheless placed 334 trades over more than two years without obtaining same-day approval from the clients involved.

FINRA alleges that this conduct violated Rule 3260(b), which prohibits exercising discretionary authority without written customer permission and firm approval, and Rule 2010, which requires brokers to adhere to high standards of commercial honor and just and equitable principles of trade.

FINRA’s Sanctions Against Meyer

Under the AWC, Meyer agreed to be suspended for six weeks from associating with any FINRA member firm in any capacity and to pay a $5,000 fine. The AWC explains that during the suspension period, Meyer is subject to statutory disqualification, meaning he may not be employed in any role, including clerical or ministerial functions, with a FINRA member firm.

FINRA notes that Meyer consented to these sanctions without admitting or denying the underlying findings. The AWC also states that the sanctions will take effect on a date set by FINRA and that Meyer has waived any claim of inability to pay the monetary penalty.

Why This Matters for Investors

Unauthorized discretionary trading can create significant risks for customers because it permits a broker to place trades without confirming that each transaction aligns with the client’s objectives, risk tolerance or current financial circumstances. FINRA rules require written authorization from the customer and firm approval before any discretionary activity can occur, and those safeguards are designed to prevent trades from happening without informed consent.

For investors, situations like the one described here highlight several important considerations:

• Unexpected or unexplained trades are a red flag. If transactions appear on account statements that were not discussed or approved, it may be appropriate to raise the issue with the firm’s branch management or compliance department.
• General discussions about strategy are not the same as authorizing trades. Even when clients have periodic conversations about investment approaches, brokers must still obtain explicit trade-by-trade approval unless the account is formally designated as discretionary.
• Written documentation matters. Investors may want to review their account agreements to confirm whether they have granted any form of discretionary authority. If not, each trade should involve direct, same-day communication.
• Supervisory oversight depends on accurate information. When discretionary activity occurs outside approved channels, firms may be unable to detect problems, assess suitability or prevent misconduct early.

For clients, staying attentive to monthly statements and trade confirmations is one of the most effective ways to ensure account activity reflects their instructions and risk preferences. If anything appears inconsistent or unclear, timely follow-up with the firm is essential.

Discuss Your Situation With the Sonn Law Group

If you’ve seen trades in your account that you don’t remember approving, or you’re unsure whether your broker followed the rules on discretionary authority, it may be time to get an independent review of your accounts.

The Sonn Law Group represents investors across the country in claims involving unauthorized trading, failures to follow instructions, misrepresentations and other forms of brokerage misconduct. Our cases are handled on a contingency-fee basis, meaning our firm only receives a fee if we obtain a financial recovery for you.

If you would like to discuss your situation, you can request a confidential evaluation by calling 833-912-3000 or submitting our online consultation form.