Raymond James refunds $8.7M in mutual fund overcharges

ST. PETERSBURG — The Financial Industry Regulation Authority ordered Raymond James Financial to pay back $8.7 million for allegedly overcharging mutual funds.

FINRA announced more than $30 million in restitution Monday, not only from Raymond James, but Wells Fargo Advisors, Wells Fargo Advisors Financial Network and LPL Financial. The independent securities firm regulator says those firms failed to waive mutual fund sales charges for some charitable and retirement accounts dating back to 2009.

The financial firms detected these overpayments and voluntarily self-reported them to FINRA, according to the authority's executive vice president and enforcement chief Brad Bennett. Raymond James and the others offered waivers to retirement and charitable mutual fund accounts, but did not actually complete the waiver for what is estimated to be about 50,000 eligible customers.

The companies failed to adequately supervise the mutual fund sales, relying instead on financial advisors to waive charges without providing them critical information and training, FINRA says. Raymond James and the others did not admit or deny the charges, but did consent to the entry of FINRA's findings.

Raymond James was ordered to pay out another seven-digit restitution claim in 2011 for charging excessive commissions on securities transactions. The company and two of its subsidiaries automated commission schedules at the time for more than 27,000 equity transactions, which created the overcharge, according to FINRA.

Raymond James and two of its affiliates paid back more than $2.1 million.

Raymond James, which trades on the NYSE under the symbol RJF, reported a profit of $113.5 million, or 79 cents per share, on revenues of $860.2 million for the quarter ended March 31. That compared to $104.6 million, or 74 cents per share, profit the year before on revenues of $805.7 million.