Raymond James owes clients an estimated $6.9 million for failure to apply the appropriate breakpoint discounts, some $3.6 million of which it will recover from financial advisers at Raymond James & Associates and its independent broker/dealer, Raymond James Financial Services. The company said it might also be on the hook for penalties of up to $6.5 million for related enforcement actions by the SEC and the NASD.

Only a handful of B/Ds have announced that they face enforcement action by regulators for breakpoint violations, including Merrill Lynch, Legg Mason, American Express Financial Advisors and Wachovia. But by the NASD's conservative estimates, broker/dealers overcharged customers some $86 million in 2001 and 2002, all of which must be fully refunded.

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