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Raymond James pays $15M to settle SEC charges
The SEC has announced has issued a settled order against three Raymond James entities for improperly charging advisory fees on inactive retail client accounts and charging excess commissions for brokerage customer investments in certain unit investment trusts (UITs).
The order finds that Raymond James & Associates, Inc., and Raymond James Financial Services Advisors, Inc., failed to consistently perform promised ongoing reviews of advisory accounts that had no trading activity for at least one year. According to the order, because they did not conduct the reviews properly, they failed to determine whether the client’s fee-based advisory account was suitable. The order further finds that the entities also misapplied the wrong pricing data to certain UIT positions held by advisory clients, causing them to overpay fees.
Under the order, the Raymond James entities will pay disgorgement of $11.1 million, prejudgment interest of $1.1 million and a civil money penalty of $3 million, for a total of $15.2 million.