The Financial Industry Regulatory Authority Inc. said Thursday it had reached a settlement with two broker-dealers under the roof of Raymond James Financial Inc. for a variety of compliance failures, including missing red flags when overcharging clients.
The two Raymond James firms agreed to Finra's settlement without admitting or denying the regulator's findings. A spokesperson for Raymond James declined to comment.
Finra said it fined Raymond James Financial Services Inc., the independent broker-dealer, $800,000 in the matter. According to Finra, from at least January 2012 through April 2018, Raymond James Financial Services "failed to reasonably supervise two registered representatives who engaged in a scheme to overcharge commissions to seven institutional customers, which they serviced as part of a team."
"Although the scheme raised multiple red flags, [Raymond James Financial Services] failed to reasonably investigate them," according to Finra. The firm also agreed to almost $49,000 in restitution.
Meanwhile, Raymond James Financial Services and Raymond James & Associates Inc., the broker-dealer for employee advisers, both failed from January 2012 to February 2020 to have a qualified principal authorize changes to the account name or designation on more than 7,500 equity orders, which breaks industry rules. Raymond James & Associates was levied a $300,000 fine to settle the matter.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
The collaboration will give RIAs yet another access point into the alternatives space through a new unified managed account capability.
A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year- their highest share since 2021 according to DeVoe & Company.
"Unless he has to leave for fraud".
Hardliners give way to pressure to approve consideration of bills.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
