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SEC fines Raymond James units $15M for improperly charging retail investors

The Securities and Exchange Commission fined three Raymond James Financial Inc. units $15 million for improperly charging advisory fees on inactive client accounts and excess commissions for brokerage customer investments in certain unit investment trusts.

The regulator found that Raymond James & Associates Inc. and Raymond James Financial Services Advisors Inc. failed to consistently perform promised ongoing reviews of advisory accounts that had no trading activity for at least one year. Raymond James & Associates and Raymond James Financial Services Inc. recommended that their brokerage customers sell unit investment trusts before their maturity and buy new ones without adequately determining whether these recommendations were suitable.

The companies agreed to be censured and to disgorge approximately $12 million representing inappropriate client advisory fees and unit investment trust commissions, together with prejudgment interest, and to pay a $3 million civil penalty. They also agreed to make distributions to harmed investors.