Tr?id=566623520170033&ev=PageView&noscript=1

FINRA Penalizes Baird Over $100 Trading Commissions

Posted on September 22nd, 2022 at 2:15 PM
FINRA Penalizes Baird Over $100 Trading Commissions

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has ordered Robert W. Baird & Co. to pay $461,481 plus interest due to allegations that the firm overcharged its clients on thousands of equity transactions for at least one year.

Baird’s chief compliance officer, Christa Graverson, also consented to a $150,000 fine and restitution of $266,481 plus interest without admitting or denying FINRA’s investigatory findings. According to FINRA, Baird’s official commission schedule listed a minimum commission of $100 on equity transactions between June 2019 and December 2020, which resulted in “unfair commission being charged on 7,277 equity transactions.”

Baird additionally failed to implement and maintain a supervisory system “reasonably designed to achieve compliance with FINRA Rule 2121”, according to FINRA. FINRA has alleged that Baird imposed a minimum commission of $100 as well as a handling fee for all equity transactions. According to FINRA, Baird’s equity transaction commissions ranged from over 5% to 93% of the transactions’ principal value, while the average overcharge per equity transaction was $37. Although Baird often flagged equity transactions where clients were charged more than 5% of principal, Baird’s supervisory system did not flag transactions where the firm charged the minimum $100 commissions, according to FINRA.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.