Raymond James’ Affiliates Gouge Investors


Raymond James affiliates have been ordered to pay $2.1 million in fines and restitution to more than 15,500 of its customers for overcharging them in 27,000 transactions. Raymond James customers paid nearly $1.7 million in excess commissions, according to the Financial Industry Regulatory Authority (FINRA). In addition, FINRA found that Raymond James’ supervisory systems were inadequate. The excessive commissions primarily involved low-priced securities (commonly known as penny stocks).

The overcharging took place at two affiliated entities: Raymond James Financial Services with 4,753 brokers and Raymond James & Associates with 1,645.

The Raymond James entities settled the matter by agreeing to refund the commissions and consenting to the entry of FINRA’s findings without admitting or denying them, which FINRA customarily allows its members to do.

Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, said, “Raymond James failed to adequately monitor its supervisory systems and as a result, both Raymond James & Associates and Raymond James Financial Services overcharged thousands of customers on their securities transactions. Broker-dealers must ensure that their automated systems set commission charges that are fair to investors.”

InvestmentNews ranks Raymond James Financial Services as the second highest paying out of 25 independent broker dealers with an average annual payout to its brokers of $311,513.

Page Perry is an Atlanta-based law firm with over 150 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 45 occasions. For further information, please contact us.