Raymond James fined $50,000 for supervision failure

On November 22, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and Raymond James Ltd.

Raymond James admitted it failed to ensure adequate supervision of the option trading in 23 client accounts of one registered representative.

Specifically, Raymond James admitted to the following violation:

(a) Between May 14, 2008 and October 31, 2008, Raymond James failed to ensure adequate supervision of the option trading in 23 client accounts of one registered representative, contrary to IDA Regulations 1300.1 (o), 1300.2 and IDA Policy No. 2 and Dealer Member Rules 1300.1 (o), 1300.2 and 2500.

Pursuant to the settlement agreement, Raymond James agreed to the following penalty:

(a) A fine of $50,000

Raymond James also agreed to pay costs in the amount of $10,000.

Read the settlement agreement.

IIROC formally initiated the investigation into Raymond James’ conduct in June 2010. Raymond James is an IIROC-regulated firm.

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