SEC Fines Raymond James, Baird for Big-Time Wrap-Fee Violations

According to a recent InvestmentNews article entitled “Raymond James, Baird to pay $850,000 for SEC wrap-fee violations,” the Securities and Exchange Commission (SEC) fined Raymond James and Robert W. Baird $850,000. The SEC accused both firms of failing to establish procedures needed to determine what their clients were being charged in commissions beyond their wrap-fee programs. The firms were not able to determine the fees charged to their clients when advisers “traded away” with a broker-dealer outside their wrap-fee program, making it impossible to determine a correct number. Raymond James will pay $600,000 and Baird, $250,000. A wrap fee is a comprehensive charge levied by an investment adviser to a client for providing a bundle of services, such as investment advice, research or brokerage services. They allow the advisor to simplify the exchange by charging one fee up front. Andrew Ceresney, director of the SEC’s enforcement division stated: “Baird and Raymond James lacked policies and procedures to consider an entire category of cost information and didn’t fully evaluate whether these wrap fee programs were a good fit.” Please call our Chicago-based law offices at 312-332-4200 for a free consultation with an attorney to discuss your options of suing Raymond James or Robert W. Baird for investment losses. We take cases on a contingency fee basis only.