Raymond James Financial, Inc.

Raymond James Financial has 2,200 offices around the world. Its business falls into four core areas. The private client group offers securities transaction, investment advisory and financial planning services. It operates through subsidiaries Raymond James & Associates and Raymond James Financial Services in the U.S. In Canada, it is Raymond James Ltd., and in the U.K., it is Raymond James Investment Services. The private client group consists of about 4,750 financial advisors. Raymond James’ professional asset management division includes proprietary asset management operations, internally sponsored mutual funds, non-affiliated private account portfolio management alternatives and several nondiscretionary fee-based programs.

NASD Fines Raymond James Over Wrap Accounts

The NASD censured and fined Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. $750,000 for fee-based (or “wrap”) account violations and ordered $138,000 in restitution. The NASD found that Raymond James did not have a supervisory system to monitor their fee-based accounts. Many clients were “buy and hold” customers who would have been better off in commission-based accounts and never even entered a trade during the period investigated, yet they paid $138,000 in fees. Raymond James terminated its fee-based brokerage business rather than retain an independent consultant and establish adequate training and supervision of fee-based accounts as required by the NASD’s order.

NASD Fines Raymond James for Lax Supervision

The NASD fined Raymond James Financial Services, Inc. $2.75 million for failing to adequately supervise more than 1,000 “producing” branch managers nationwide. The NASD’s investigation revealed that Raymond James allowed producing branch managers to supervise themselves. This flawed supervisory system created a situation where unsuitable securities transactions to elderly and risk-averse customers went undetected. The NASD determined that this, and Raymond James’ compliance through electronic transaction surveillance with only three “sales managers” over the more than 1,000 “branch” managers was insufficient.

If you suffered investment losses, please contact us or communicate with a Dimond Kaplan & Rothstein, P.A. attorney at 888-578-6255 or jkaplan@dkrpa.com for a free case evaluation.

EN   ES   PT     

Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182