Raymond James paid $15 million for improperly charging retail investors

Summary

The SEC instituted settled proceedings against three Raymond James entities for improperly charging advisory fees and commissions to retail investors. The SEC found that Raymond James failed to consistently conduct promised reviews of inactive advisory accounts, resulting in customers continuing to pay advisory fees without adequate assessment of whether fee-based accounts remained suitable. The SEC also found that Raymond James used incorrect pricing information for certain unit investment trust positions, causing advisory clients to overpay fees. Separately, Raymond James recommended that brokerage customers sell unit investment trusts before maturity and buy new UITs without adequately determining whether those recommendations were suitable. The transactions generated greater commissions than customers would have paid by holding the investments until maturity. The firm also failed to apply available sales discounts for some customers. Raymond James agreed to disgorge approximately $12 million in inappropriate fees and commissions, plus prejudgment interest, and pay a $3 million civil penalty. Primary source: SEC — Raymond James Agrees to Pay $15 Million for Improperly Charging Retail Investors: https://www.sec.gov/newsroom/press-releases/2019-178