Raymond James Payouts to SEC Reach $37 Million

Posted on September 25th, 2019 at 11:18 AM
Raymond James Payouts to SEC Reach $37 Million

From the Desk of Jim Eccleston at Eccleston Law LLC:

Raymond James agreed to pay more than $15 million to settle Securities and Exchange Commission ("SEC") allegations of collecting excess commissions and failing to conduct adequate suitability reviews. The latest case came after Raymond James settled two client overcharging lawsuits in June for $15 million and agreed to pay disgorgement of $6.9 million in March under the SEC. It's the firm's third major settlement of the year for a combined $37 million.

According to the SEC order, Raymond James entities improperly charged inactive advisory accounts and received excess commissions for sales of unit investment trusts. The firm earned $4.9 million in advisory fees over 4, 5 years from 7,708 accounts it failed to adequately review after they were inactive for at least one year. It also received $5.5 million in excess sales charges from 2,044 brokerage accounts that sold investment trust ("UIT") positions before maturity and repurchased often-similar products, according to SEC. 

C. Dabney O'Riordan, the Co-Chief of the SEC Division of Enforcement's Asset Management Unit, said in a statement that "Investment advisors and broker-dealers have ongoing obligations to their client and customers and that Raymond James' failures cost their advisory clients and brokerage customers millions that will be repaid as part of [the] settlement."

Raymond James will pay disgorgement of $15.2 million, restitution and a civil penalty.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, raymond james, sec, suitability reviews,

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.

August 10, 2022
UBS Wealth Group’s Legal Costs Skyrocket in Q2

UBS Wealth’s litigation expenses have substantially spiked in the second quarter as the firm has faced a host of investor complaints and regulatory probes into UBS’ volatile Yield Enhancement Strategy (YES).