ALABAMA INVESTOR ALERT:Alabama Securities Commission Order Against Raymond James – Investors May Have Been Charged Excessive Commissions
A recent Alabama Securities Commission enforcement action found that Raymond James charged excessive and unreasonable commissions on thousands of transactions, potentially harming retail investors.
he Alabama Securities Commission has issued an administrative order against Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. involving widespread commission practices affecting investors nationwide.
According to the order, regulators found that Raymond James charged unreasonable commissions on more than 270,000 transactions, totaling over $8.25 million in excessive charges.
If you were a Raymond James client, you may have paid far more in fees than you realized.
WHAT THE ORDER FOUND
The ASC investigation uncovered serious issues, including:
- Excessive commissions on low-value stock trades
- Charges exceeding 5% of the principal investment in many transactions
- In some cases, commissions exceeded 90% of the value of the trade
- A default $75 minimum commission applied even to very small transactions
The result: investors—especially those making smaller trades—were disproportionately impacted.
HOW INVESTORS WERE AFFECTED
According to the order:
- Over 270,000 transactions nationwide involved excessive commissions
- In Alabama alone, more than 7,200 transactions involved unreasonable charges
- Alabama investors were charged over $200,000 in excessive commissions
These were not isolated incidents—they were systemic.
THE REAL PROBLEM: SYSTEMIC FAILURES
The order didn’t just identify excessive fees—it identified firm-wide failures:
1. Default Commission System
Raymond James systems automatically applied a minimum $75 commission, even when:
- The trade value was extremely small
- Lower-cost alternatives were available
2. Lack of Supervision
The firm:
- Failed to monitor low-value trades properly
- Did not use effective exception reports
- Missed transactions where commissions exceeded reasonable levels
3. Prior Regulatory History
This was not the first time.
Regulators noted Raymond James had previously paid over $1.7 million in restitution for similar conduct—but failed to fix the issue.
WHAT THE ORDER REQUIRES
As part of the settlement, Raymond James agreed to:
- Pay at least $8.25 million in restitution plus interest to affected investors
- Pay millions in fines and penalties across multiple states
- Pay $235,064.52 specifically to Alabama investors
- Implement compliance changes to prevent excessive commissions
WHAT THIS MEANS FOR INVESTORS
A regulatory order is important—but it does not fully compensate investors.
Even when restitution is paid:
- It may not cover all losses
- It may not include consequential damages
- It does not address broader portfolio harm
YOU MAY HAVE A CLAIM IF
You may have a claim against Raymond James if:
- You paid high or unexpected trading commissions
- You made frequent small trades that generated fees
- Your account showed repeated $75 commissions
- You were unaware of how fees were calculated
- Your portfolio underperformed due to excessive costs
HOW RECOVERY WORKS
Most claims against firms like Raymond James are handled through FINRA arbitration.
This process allows investors to recover losses caused by:
- Excessive commissions
- Unsuitable trading activity
- Failure to supervise
CALL TO ACTION
Free Case Evaluation – No Fee Unless You Recover
If you were a Raymond James client and believe you were charged excessive commissions, we can review your account and determine whether you have a claim.
Call: (205) 644-3744
Submit a consultation request online
from Mazer Law Firm PC https://mazerlawfirmpc.com/alabama-securities-commission-order-against-raymond-james-investors-may-have-been-charged-excessive-commissions/
