NASD Fines Raymond James $2.75M for Lax Supervision

The NASD announced Wednesday it has fined Raymond James $2.75 million for lax supervision of 1,000 of its producing branch managers between 2000 and 2004.

In a related action, NASD permanently barred one of the firm’s former branch managers, Donna Vogt, for recommending unsuitable mutual funds and variable annuities to retirees.

“Raymond James’ supervisory system was inadequate because it allowed producing branch managers to supervise themselves,” said James S. Shorris, NASD executive vice president and head of enforcement. “This flawed supervisory system created a situation where sales of variable annuities and risky mutual funds to elderly and risk-averse customers went undetected.”