FYI: Raymond James sent notices to some of their advisors on Monday requiring them to give back fees they collected from selling a certain class of mutual fund in retirement accounts and charitable trusts.
According to sources familiar with the matter, as well as advisors who were sent the notification, the firm said the fees should have been waived for clients, but in many cases weren't.
"In the course of operational reviews, Raymond James determined that in certain qualified plan and charitable trust accounts, some clients did not receive all fee waivers for which they were eligible based on investment company-specific offerings as detailed in their prospectuses," a spokesperson for the firm said in a statement Wednesday.
Some mutual funds waive their upfront sales charges for Class A shares sold to charities or within retirement accounts. Class A shares generally have lower management fees than Class B or C shares, but charge a front-end sales load.
Regards,
Ted
http://wealthmanagement.com/print/ibds/raymond-james-seeks-fee-clawbacks-mutual-fund-sales
