“A registered representative who recommends that a customer sell his or her UIT position before the maturity date and then ‘rolls over’ those funds into a new UIT causes the customer to incur increased sales charges over time, raising suitability concerns.”
Marc Dobin, the lawyer for the three brokers, said, “While our clients are obviously disappointed in the outcome, and disagree with the conclusions reached by the arbitrators, they accept the panel's decision and are prepared to move forward with their careers.”
In the end, Raymond James ended up paying more than $46,000 in hearing and administrative fees. The case number was 19-02079 and the hearing was held in Tampa, Fla.
Raymond James responded to a request for comment in an email:
“We are pleased to have these matters concluded and have revised our policies and procedures to address the supervisory enhancements required by the SEC at Raymond James and a number of competitor firms. The firm has completed remediation with the appropriate clients and looks forward to continuing to provide best-in-industry service in support of their goals.”
Correction: The original version of this article suggested that all three brokers had settled a counterclaim made by Raymond James.