Raymond James expects to repay investors $6.9 million and the SEC $6.5 million for failure to give investors mutual fund breakpoints, the Associated Press reports. In total, that will impact the companys revenues by more than $13 million and result in a pretax charge of $9.8 million.
In November, Raymond James CEO Thomas James said that relying on outside parties to track appropriate price points for various customers "was clearly insufficient." He added that the firm is "embarrassed by this incident."
Meanwhile, in other scandal-related news Thursday, Putnam Investments, which has bled more than 13% of assets, has dropped from the nations fifth-largest fund company to sixth-largest, the AP reports, citing data from Financial Research Corp.