Oppenheimer & Co, Inc. agreed to pay a fine of US $2.25 million and restitution of over US $716,000 to customers to resolve a disciplinary action brought by the Financial Industry Regulatory Authority that, from August 4, 2009, through September 30, 2013, it sold non-traditional exchange traded funds to certain of its retail clients when its policies and procedures precluded such sales. The relevant products included leveraged, inverse and inverse-leveraged ETFs. According to FINRA, it issued a regulatory notice in June 2009 that alerted members that these types of non-traditional ETFs were generally not suitable for retail clients (click here to access the relevant FINRA notice). In response, alleged FINRA, Oppenheimer adopted written policies and procedures that generally prohibited its representatives from soliciting retail clients to purchase non-traditional ETFs. Certain unsolicited purchases were permitted, however, if the customers were “pre-qualified.” Notwithstanding, during the relevant time, said FINRA, the firm engaged in 30,740 non-traditional ETF transactions in approximately 1,713 customer accounts. According to FINRA, Oppenheimer failed to enforce its relevant procedures; did not adequately train its supervisors and representatives regarding the firm’s prohibition regarding soliciting non-traditional ERF purchases; and did not maintain an adequate surveillance system to identify non-traditional ETF trades. Separately, RBC Capital Markets, LLC consented to pay a fine of US $125,000 to FINRA because, in connection with the settlement of an arbitration involving two customers, the firm included language in the final agreement that the customers would not object to any effort by RBC to remove reference to the arbitration in the firm’s CRD registration records. However, said FINRA, such language violated an express FINRA rule that prohibits a member from conditioning or seeking to condition the settlement of a customer dispute on the customer’s agreement not to object to the removal of a reference to the dispute on the member’s CRD registration records. (Click here to access the relevant FINRA rule, Rule 2081.)