Helena, Mont.-Today, State Auditor and Securities Commissioner Troy Downing announced a $13 million settlement with Raymond James & Associates, Inc. and Raymond James Financial Services, Inc., resulting from an investigation into the company’s practices of charging unreasonable commissions to retail customers on small-dollar transactions.
The multi-state investigation, spearheaded by the Montana Commissioner of Securities and Insurance, found that Raymond James charged unreasonable commissions on over 270,000 equity transactions and trades nationwide over the past five years. The practice resulted in customers being overcharged by $8.25 million.
“Our agency is honored to take the lead in this multi-state action to protect Montana investors and hold Raymond James accountable for charging unreasonably high commissions.” Commissioner Downing goes on to say, “Protecting investors from unfair practices is a charge we take seriously. This settlement is a reminder that our agency will hold companies accountable if they breach the trust of their customers.”
Affected Montana customers will receive restitution of the excessive commissions plus interest. Raymond James must also pay administrative fines and costs associated with the investigation. Raymond James will certify in writing that it has changed its policies and has enhanced its procedures to ensure that all commissions are fair and reasonable.
For questions about investing or to report concerns, the Commissioner of Securities and Insurance can be contacted by calling 406-444-2040 or by going to CSIMT.gov.
Troy Downing is the Commissioner of Securities and Insurance, Montana State Auditor. Commissioner Downing is a two-tour combat veteran, businessman, and entrepreneur.
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