Raymond James Entities Settle With SEC for $15 Million

The SEC says that $3 million of a $15 million fine against Raymond James is a civil penalty.


jonathan ernst/Reuters

Sept. 17, 2019 2:51 pm ET

Raymond James Financial

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has settled an order with the Securities and Exchange Commission over improperly charging fees and excess commissions and has agreed to pay the regulator $15 million. The SEC said two Raymond James operations, Raymond James & Associates Inc. and Raymond James Financial Services Advisors Inc., didn’t review advisory accounts as they said they would and therefore didn’t “determine whether the client’s fee-based advisory account was suitable.” Some clients also overpaid in fees because the Raymond James entities used incorrect pricing data, the SEC said.

Raymond James & Associates and Raymond James Financial Services additionally advised brokerage customers on what to do with unit investment trusts “without adequately determining whether these recommendations were suitable,” the regulator said. Of the $15 million fine, $12 million is for the inappropriate commissions and fees and $3 million is for a civil penalty, the SEC said. “We are pleased to have these matters concluded and have revised our policies and procedures to address the supervisory enhancements required by the SEC at Raymond James and a number of competitor firms,” a Raymond James representative said in an email. “The firm has completed remediation with the appropriate clients and looks forward to continuing to provide best-in-industry service in support of their goals.” Write to Allison Prang at allison.prang@wsj.com

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