RBC Capital Markets agreed to settle SEC charges that it sold unsuitable complex financial products to 5 Wisconsin school districts and failed to adequately disclose the risks associated with the purchase.  The firm to agreed to settle the charges by paying a total of $30.4 million that will be distributed in varying amounts to the school districts through a Fair Fund. In August, the agency sued the brokerage firm that engineered the sale, Stifel Nicolaus & Co. According to the SEC, RBC Capital Markets and Stifel in 2006 sold the school districts $200mn worth of credit-linked notes tied to the performance of CDO's.  The notes, paid for largely with borrowed funds, resulted in heavy losses for the schools. The SEC said the bank went ahead with the deal even though the products were not suitable for less sophisticated investors.  The bank also failed to disclose the major risks in its marketing materials, the agency said. The bank said Stifel acted on its own in misrepresenting the investments.  [SEC PR 11-191, 9/27/11] For further details, go to:  [SEC Administrative Proceeding #3-14564].