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Mississippi Joins Multistate $12.4 Million Securities Settlement with Raymond James
JACKSON, Miss – Secretary of State Michael Watson announced today the Securities Division of the Mississippi Secretary of State’s Office has joined a multi-state settlement with Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. (collectively, Raymond James). The firms will pay at least $8.2 million in refunds to clients and $4.2 million in penalties and costs to the states for charging unreasonable commissions on trades that harmed main street investors.
“We are committed to ensuring large brokerage firms protect all investors regardless of how big or small the transaction. I’m thankful for our team and how hard they work to protect the hard-earned money of all Mississippians,” said Secretary Michael Watson.
The state securities regulators investigation found that Raymond James charged unreasonable commissions on over 270,000 equity transactions and trades nationwide over the past five years. Raymond James took a commission on these transactions in excess of 5% of the principal value, with commissions in some cases exceeding 90% of the principal value of the customer’s transaction. Affected customers in states participating in the settlement will receive restitution of the excessive commissions plus interest.
Raymond James must also certify within 60 days that all supervisory policies and procedures have been enhanced so all commissions are fair and reasonable. Raymond James will certify it has established:
Compliance systems to prevent the imposition of unreasonable or unfair commissions;
Operational changes designed to ensure, regardless of the principal amount of a transaction, commissions will not exceed 5%, in the absence of a documented exception; and
Systems that incorporate all equity transactions, regardless of the principal amount of the transaction, when identifying and reviewing potentially excessive commissions.
One year after certification, Raymond James will undergo a review to confirm the implementation of the changes set forth. The review will also assess the efficacy of the changes to Raymond James’s practices, policies, and procedures. The results of this review will be reported to the states.
Raymond James neither admits nor denies the findings and cooperated fully with the investigation.
The Secretary of State’s Office encourages investors to reach out with any concerns or questions regarding investments or financial professionals. The Securities Division may be reached at (601) 359-1334 or securities.customerservice@sos.ms.gov.
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