FINRA Sanctions Raymond James for Supervisory Issues
According to the Financial Industry Regulatory Authority, the regulator has fined Raymond James Financial Services $2 million for failing to maintain reasonably designed supervisory systems and procedures for reviewing e-mail communications.
In addition, Raymond James has agreed to conduct a risk-based retrospective review to detect potential violations evidenced in past e-mails.
According to FINRA, during a nine-year review period, Raymond James’ e-mail review system was flawed in significant respects, allowing millions of e-mails to evade meaningful review.
This increased the possible risk that certain misconduct by firm personnel could go undetected by the firm, according to FINRA. The “lexicon” or combinations of words and phrases used to flag e-mails for review were not reasonably designed to detect certain potential misconduct that Raymond James, in light of its size, structure, and business model.
For FINRA’s full findings see FINRA Case # 2013036343601
Investigating Potential Claims
The White Law Group is investigating the liability that Raymond James Financial Services may have for losses sustained by their clients. Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules. If it is determined that the broker dealer failed to supervise their agents, they can be held responsible for losses in a FINRA arbitration claim.
Are you concerned about your investments with Raymond James Financial Services? The attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, please visit www.whitesecuritieslaw.com