Raymond James May Face Disciplinary Action

Raymond James Financial Inc. may face action from the Securities and Exchange Commission and the National Assn. of Securities Dealers for allegedly failing to provide promised mutual fund discounts to clients.

The St. Petersburg, Fla.-based brokerage said in a regulatory filing that it might have to pay a penalty of $6.5 million and that the money owed to customers totaled $6.9 million.

Customers who make large purchases of mutual fund shares often are entitled to discounts on commissions charged on smaller investments. Regulators have discovered that many firms didn’t give investors the discounts, known as breakpoints.

SEC Chairman William Donaldson said last month that numerous brokerage firms could face charges in connection with failure to give customer discounts on mutual funds. The agency’s staff has recommended taking action against the firms, which were notified in so-called Wells notices, he said.

American Express Co., the fourth-biggest U.S. credit card issuer; Wachovia Corp., the fifth-largest U.S. bank; and Legg Mason Inc., a brokerage and money management firm, also said last month that they faced possible enforcement action from the SEC over breakpoints.

From Bloomberg News