The U.S. Securities and Exchange Commission sanctioned RBC Capital Markets Corp. over allegations that it excessively wined and dined certain clients.

The SEC issued an order instituting administrative proceedings against RBC Capital Markets, which finds that RBC violated the fair dealing, gifts and gratuities, and supervisory rules of the Municipal Securities Rulemaking Board for expenses incurred on trips to New York to meet with rating agencies as part of a municipal bond issuance process.

The order censures RBC, orders it to cease and desist from future violations and orders it to pay a $125,000 civil penalty. RBC consented to the issuance of the order without admitting or denying any of the findings.

The SEC order finds that on rating trips taken in 2004 and 2005, city officials were accompanied to New York by family members, where they all dined at upscale restaurants, attended Broadway shows and sporting events and had access to a private car service. Both rating trips lasted six days, even though meetings with the rating agencies took place on only one or two days, the SEC noted.

The order also finds that RBC advanced the payment for a substantial portion of the expenses incurred by the city officials and their family members and then obtained reimbursement for all expenses incurred on the rating trips as a cost of issuance directly from bond proceeds at closing.