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.
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