Finra fines Raymond James $2 million over emails

Regulator said firm's review system was 'flawed in significant respects.'
DEC 21, 2017

The Financial Industry Regulatory Authority Inc. has fined Raymond James Financial Services $2 million for failing to have in place adequate email supervisory systems as well as procedures for reviewing emails. Finra found that during a nine-year review period, Raymond James' email review system was "flawed in significant respects." It said that millions of emails evaded meaningful review, creating "unreasonable risk that certain misconduct by firm personnel could go undetected by the firm." (More: Finra will publish budget for first time in 2018) The regulator said the firm's combinations of words and phrases — or "lexicon" — used to flag emails for review were not reasonably designed to detect certain potential misconduct. Finra said that in light of its size, structure, business model and experience from prior disciplinary actions, Raymond James should have known or anticipated that such misconduct would recur from time to time. The firm also failed to devote adequate personnel and resources to the team that reviewed emails flagged by the system, even as the number of emails increased over time, Finra said. Raymond James, which neither admitted nor denied the charges, has agreed to conduct a risk-based retrospective review to detect potential violations in past emails.

Latest News

Nationwide finds Medicare myth on long-term care could cost Americans dearly
Nationwide finds Medicare myth on long-term care could cost Americans dearly

As a tsunami of retirees comes crashing in, three-fifths of those surveyed believe – wrongly – that the federal safety net will cover their LTC needs.

Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says
Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says

Counting advisor moves in and out of firms requires some art as well as science.

Fintech bytes: Orion, Altruist unveil new RIA-focused integrations
Fintech bytes: Orion, Altruist unveil new RIA-focused integrations

Orion's latest update, a partnership with 11th.com, focuses on an underserved area of compliance for advisors and wealth firms.

Raymond James reels in advisors managing $1B+ in Colorado
Raymond James reels in advisors managing $1B+ in Colorado

The latest arrivals, including a 10-advisor ensemble from Ameriprise, bolster the firm's independent contractor and employee advisor channels.

Shakeup at Athene as insurer names veteran Grant Kvalheim CEO
Shakeup at Athene as insurer names veteran Grant Kvalheim CEO

The firm has also appointed Mike Downing and Sean Brennan as co-presidents to its US operations as it looks to proceed with an ambitious five-year growth plan.

SPONSORED RILAs bring stability, growth during volatile markets

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave