Date: August 31, 2024
Source: https://www.financialadvisoriq.com/
Complaint Reporting Violations
- Failure to report complaints: Raymond James & Associates and Raymond James Financial Services neglected to report customer complaints to Finra as required by rule 4530(a)(1)(b).
- Unreported complaints: The firms received numerous complaints alleging theft, misappropriation of funds, or forgery, but failed to report them.
- Form U4 and U5 oversight: Raymond James also failed to supervise the timely reporting of customer complaints on its registered representatives’ Forms U4 and U5.
Mutual Fund Purchase Oversight
- Lack of controls: Raymond James lacked controls to ensure timely notification of appropriate personnel regarding customer complaints.
- Improper supervision: The firms failed to properly supervise mutual fund purchases made by their registered representatives directly with mutual fund providers.
- System failures: Raymond James failed to put many transactions through its automated surveillance systems and properly configure systems for reviewing “many other transactions.”
Settlement and Penalties
- Censure and fines: Raymond James & Associates and Raymond James Financial Services agreed to a censure without admitting or denying the findings.
- Financial penalties: RJA agreed to pay a fine of $525,000 and restitution, while RJFS agreed to pay a fine of $1.3 million and restitution.
- Total fine: The total financial penalty amounts to $1,936,723.98.
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