Raymond James hit with second 'sweeps' lawsuit

A putative class-action lawsuit filed Tuesday in federal court in Orlando, Florida, accuses the large broker-dealer of breaching its fiduciary duties with its handling of clients' uninvested cash. JPMorgan, Raymond James join firms sued over cash sweeps Suit: UBS' sweeps change is 'im...

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Bibliographic Details
Published inFinancial Planning (Online)
Main Author report
Format Trade Publication Article
LanguageEnglish
Published New York SourceMedia 28.08.2024
Subjects
Litigation
United States > US
Ohio
California
Florida
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Summary:A putative class-action lawsuit filed Tuesday in federal court in Orlando, Florida, accuses the large broker-dealer of breaching its fiduciary duties with its handling of clients' uninvested cash. JPMorgan, Raymond James join firms sued over cash sweeps Suit: UBS' sweeps change is 'implicit admission' of wrongdoing Cash sweeps legal avalanche hits Ameriprise, LPL with new suits Regulatory scrutiny of 'cash sweeps' extends to Morgan Stanley UBS joins Morgan Stanley, Wells Fargo in raising sweeps rates The latest suit, filed on behalf of a pair of Ohio residents named Raymond and Juliet Schmidlin, says Raymond James routinely moves clients' uninvested cash over to affiliated banks, Raymond James Bank and TriState Capital Bank, as well as various nonaffiliated banks. Speaking last month in an analyst call about third-quarter earnings, Chief Financial Officer Paul Shoukry, who has been tapped to become the next CEO, called Raymond James' sweeps policies "well thought through" and "very compliant."