NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Raymond James Financial Services, Inc.
AWC/2007010730701)

The firm failed to enforce its written supervisory procedures to achieve compliance with suitability requirements as they relate to the sale of Internal Revenue Code Section 529 college savings plans (529 Plans). The firm’s written supervisory procedures required its registered representatives, including producing branch managers, to submit, at the time of a client purchase of a 529 Plan, a Form #1529 (529 Plan Account Client Disclosure Form) as well as the 529 plan application to an appropriately licensed principal to ensure, among other things, that all 529 plans offered outside of a client’s state of residence were suitable in light of state tax laws, fund performance, commissions and plan fees; and the firm’s compliance department relied on the branch to forward the forms to it for tracking. Some firm branch managers functioned as municipal securities principals, reviewing and approving 529 plan transactions, while failing to be registered and/or qualified in an appropriate municipal securities principal capacity.

Raymond James Financial Services, Inc. : Censured; Fined $150,000

Tags: 529 College Savings Plan