Multi-State Working Group Finds Firm Overcharged Customers
WASHINGTON, D.C. – (July 11, 2023) – The North American Securities Administrators Association (NASAA) has announced a $13 million settlement with Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. resulting from an investigation into the company’s practices of charging unreasonable commissions to retail customers on small dollar transactions.
The investigation was led by state securities regulators in Alabama, California, Illinois, Massachusetts, Montana, and Washington and found that Raymond James charged unreasonable commissions on over 270,000 equity transactions and trades nationwide over the past five years. This practice resulted in overcharging its customers by $8.25 million.
Affected customers in states participating in the settlement will receive restitution of the excessive commissions plus interest. Raymond James will also be required to pay administrative fines and pay costs associated with the investigation. Raymond James must also certify in writing that it has changed its policies and has enhanced its procedures to ensure that all commissions are fair and reasonable.
“This settlement shows once again that state securities regulators will take swift and decisive action to protect investors. NASAA has spent a lot of energy and resources on the pocketbook issues that are so important to Main Street investors,” said Andrew Hartnett, NASAA President and Deputy Commissioner of the Iowa Insurance Division. “When people decide to invest their hard-earned money, they should get the maximum value of their investing dollars. I want to thank the members of the multi-state working group for their diligence and hard work.”
NASAA Enforcement Committee Co-Chairs Brett Olin, Montana Deputy Securities Commissioner, and Amanda Senn, Director of the Alabama Securities Commission, commended the securities regulators from the states for their work in investigating the matter that led to the settlement and return of customer funds.
“This settlement is an important reminder to every firm to make sure it is dealing fairly with its clients,” said Senn and Olin.
– NASAA–
About NASAA:
Organized in 1919, the North American Securities Administrators Association (NASAA) is the oldest international organization devoted to investor protection. NASAA is a voluntary association whose membership consists of the securities regulators in the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, the 13 provincial and territorial securities regulators in Canada, and the securities regulator in México. For more information, visit www.nasaa.org.
For More Information:
Fred Baldassaro, Director of Communications
fbaldassaro@nasaa.org | 202-737-0900
Karen Grajales, Communications and Investor Outreach Manager
kgrajales@nasaa.org | 202-737-0900
