RBC Wealth Management, a division of RBC Capital Markets, LLC, is one of the largest wealth management firms in the U.S. by assets under management. The company is the investment management arm of the Royal Bank of Canada, a global financial institution that offers commercial and consumer banking. RBC Wealth Management offers a full range of investment strategies for individual clients as well as retirement plans, businesses and other entities.
The bottom line: RBC Wealth Management, one of the country’s largest wealth managers, offers financial planning and portfolio management to individual and institutional investors.
|Assets under management (AUM): $146,593,034,210|
|Minimum investment: Varies by program, starting at $2,500|
|Individual investor to advisor ratio: 102:1|
|Fee structure: A percentage of AUM, fixed fees|
|Headquarters: 3 World Financial Center
New York, NY 10281
All information included in this profile is accurate as of September 10, 2021. For more information, please consult RBC Wealth Management’s website.
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RBC Wealth Management has operated under its current name since 2008. Before being acquired by Royal Bank of Canada (RBC) in 2001, a bank that was founded in 1864, the firm operated as Dain Rauscher. RBC Wealth Management is a division of RBC Capital Markets, a limited liability corporation that is a subsidiary of Royal Bank of Canada.
In addition to investment services provided through RBC Wealth Management, RBC Capital Markets also offers brokerage services. RBC Capital Markets has close to 8,000 employees overall, with almost 6,000 serving as broker-dealers and nearly 2,000 in investment advisory and research roles. Additionally, over 2,300 employees are also licensed insurance agents.
The vast majority of RBC Wealth Management’s clients are individuals who are not considered high net worth, which the SEC defines as having at least $750,000 under management or a net worth believed to be at least $1.5 million. However, the firm also works with a number of high net worth individuals as well as various entities. Programs are available for both non-retirement plans and retirement accounts, including IRAs.
Minimum investment requirements at the firm vary by program, starting at $2,500 and ranging up to $250,000:
RBC Wealth Management offers an extensive menu of services for both individual and family investors as well as business owners and corporations. Individuals can choose from a comprehensive list of financial planning services and a variety of investment options.
Businesses owners can use RBC Wealth Management services for employee retirement plans and employee stock options, among other services.
Here is a full list of services offered by RBC Wealth Management:
If you invest with RBC Wealth Management, your advisor will recommend styles and strategies for your portfolio based on your risk profile. Your risk profile is determined by your financial situation, investment goals and your risk tolerance, among other factors. Client funds can be managed in either a discretionary manner, where advisors make all trading decisions without needing to consult the client, and on a non-discretionary basis, in which the client must sign off on all investment decisions.
Your investing experience will be shaped by which investment program you choose to use. The firm sponsors the following customized advisory programs:
Assets the firm typically uses in client portfolios may include:
Funds used may include those managed by RBC. The firm also offers impact investing solutions for those who want to align their investments with their values.
Investment management fees: Investment advisory clients of RBC Wealth Management pay a program fee that’s calculated based on a percentage of assets under management. The maximum fee is 2.50% of assets under management if you invest less than $25 million. For portfolios of greater value, the maximum advice fee is negotiable.
|RBC Wealth Management Advice Fee Schedule|
|Account value||Maximum advice fee|
|Up to $24,999,999||2.50%|
|$25,000,000 and above||Negotiable|
While these are the maximum rates you’ll pay, fees vary, and you can negotiate them with your financial advisor when you enroll in an investment program. Your rate is determined based on a number of factors, including the size of your account, the amount of time you have had an account at RBC Wealth Management, the combined value of all of your accounts with RBC Wealth Management, the types of securities and services provided and other relevant criteria.
Fees are payable in advance on a quarterly basis. Keep in mind that the program fee does not include a number of fees and expenses, such as bid-ask spreads, odd-lot differentials, exchange fees, certain taxes, short-term trading charges and various other investment-related charges.
Financial planning fees: For financial planning services, clients will pay a separate fixed fee. The fee starts at a minimum of $1,000 and tops out at $10,000 in most cases, though in certain circumstances a higher fee may be negotiated.
Similar to most massive wealth management firms, RBC Capital Management has a number of disclosures. As RBC Wealth Management is a division of RBC Capital Management, these disclosures, which are mostly violations of various Financial Industry Regulatory Authority (FINRA) regulations, are reported on RBC Wealth Management’s SEC filings. For reference, the SEC requires all registered investment advisory firms to detail any legal and disciplinary events within the last 10 years in their Form ADV filings.
Most recently, in 2021, it was alleged that RBC Capital Market’s risk management and supervisory protocols did not prevent the entry of erroneous orders; reject orders that exceed appropriate price or size parameters; or reject duplicative orders. Without admitting fault, the firm was censured and fined.
Also in 2021, the Massachusetts Securities Division alleged that RBC Capital Markets failed to adequately supervise its representatives in regards to the use of master limited partnership energy and telecom positions in client accounts. The firm settled the matter without admitting to fault, agreeing to pay sanctions and fines.
Beyond these most recent events, a number of the fines levied by FINRA against the firm are for allegations related to the firm’s failure to put in place supervisory systems and procedures designed to ensure compliance with certain laws and regulations, between 2008 and 2016.
For more information on the firm and further details on its complete disciplinary history, you can visit its IAPD page.
To get started with RBC Wealth Management, you have a few options:
As one of the largest financial advisor firms in the U.S. with affiliate advisors across the country, there isn’t one standard method for onboarding or client interaction at RBC Wealth Management. Your interactions with your advisor will depend on how they run their business. Most financial advisors start by gathering details about your current financial state and financial goals and then recommending possible solutions.
In terms of communications, you typically can expect monthly statements and trade confirmations, as well as quarterly reports listing securities in custody held in the account.
RBC Wealth Management’s Form ADV lists locations in the following states:
Additionally, the firm is registered to do business in most states, as well as in the District of Columbia, Puerto Rico and the Virgin Islands, even if there aren’t necessarily offices in those locations.
RBC Wealth Management may be a good choice if you’re an investor who has multiple personal and business needs that align with RBC Wealth Management’s services and RBC’s banking offerings. Since fees are negotiable and can depend on factors like how much total business the client has at RBC Wealth Management, an investor with multiple uses for the company will likely pay less in fees than an individual who is solely interested in one service.
While the company does have a low minimum investment requirement for one of its investment programs, you’ll have to work with your individual advisor to determine how much you’ll pay for their services. The firm’s fee structure isn’t transparent and may depend on which affiliated advisor you choose. Before you make your decision, be sure to research multiple firms to ensure you find the right advisor for you.
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