Defendant Name:
Raymond James & Associates, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Raymond James Financial, Inc.
SIC Code:
6211
CUSIP:
75473010
Document Reference:
33-9228
Document Details
Legal Case Name
In the Matter of Raymond James & Associates, Inc. and Raymond James Financial Services, Inc.
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 15(b) of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
29-Jun-2011
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
On June 29, 2011, the SEC instituted settled administrative and cease-and-desist proceedings against Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. According to the SEC: "Respondents offered and sold to some of their customers financial instruments known as auction rate securities ('ARS') while not accurately characterizing or while failing to adequately disclose the true nature and risks associated with these investments. ARS are bonds or preferred stock whose liquidity depends upon sufficient demand at periodic securities auctions. Although Respondents' ARS trade confirmations, sent after customers purchased ARS, disclosed the risk that these auctions could fail and that Respondents were not obliged to ensure their success, at the point-of-sale, some of Respondents' registered representatives and financial advisers improperly described ARS as safe, liquid alternatives to money market funds and other cash-like investments, without adequately disclosing the auction process or the risk of illiquidity if these auctions failed. On February 13, 2008, a significant number of ARS auctions failed, resulting in an overall market collapse that left thousands of investors, including Respondents‟ customers, holding ARS that they have not been able to liquidate."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Various undertakings
Other Defendants in Action:
