Investment Advisors Settle SEC Charges for Improper Advisory Fees and Excessive Commissions
Three investment advisors settled SEC charges for improper advisory fees and excessive commissions related to unit investment trusts ("UITs").
According to the SEC, three entities of Raymond James failed to:
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conduct promised suitability reviews for certain advisory accounts;
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adopt policies and procedures intended to prevent violations concerning the "suitability" of fee-based advisory accounts;
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address advisory fees due to overvaluing certain assets;
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maintain a reasonable basis for recommending certain UIT transactions to brokerage customers; and
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disclose conflicts of interest associated with earning greater compensation as a result of recommending certain securities.
To settle the SEC charges, the Raymond James entities agreed to (i) a censure, (ii) disgorge approximately $12 million, and (iii) pay a civil monetary penalty of $3 million. Raymond James neither admitted to nor denied the findings in the SEC Order.