Failure To Supervise 1100 Branch Managers Adds Up To 2.75 Million Dollar Fine For NASD Member Firm
Announced yesterday, the NASD fined Raymond James Financial Services, Inc. $2.75 million for failing to adequately supervise sales activities of 1000 producing branch managers dispersed throughout the United States.
Of note, one branch manager located in Wisconsin was barred from the industry having been identified as recommending unsuitable mutual fund and variable annuity purchases to elderly or retirement age customers, and making misleading statements to customers in correspondence. Specifically, the NASD found that the branch manager "recommended unsuitable purchases and concentrations of aggressive mutual funds and variable annuities to at least five customers who were elderly, retired or nearing retirement, and that these transactions were unsuitable due to the over-concentration in aggressive growth funds, and because access to their funds was limited by the variable annuity surrender charges."
