In an SEC filing, Raymond James disclosed that it denied customers almost $6.875 million in breakpoint discounts and that it anticipates $6.5 million in penalties as a result, Dow Jones reports.
The company is planning to take a charge against reimbursements, saying they will likely reduce pretax earnings by about $3.27 million. However, SEC and NASD penalties haven't been determined, and no money has been set aside to cover such expenses, the filing also says.
Regulators have already warned the firm that enforcement actions would be recommended against it. In the meantime, the company has been reviewing fund purchases going back to 2001. However, NASD has asked Raymond James to seek out customers who bought Class A load funds as far back as Jan. 1, 1999, and inform them that they may be due refunded discounts.
Stay ahead of the news ... Sign up for our email alerts now