Oregon's Division of Financial Regulation has teamed up with the North American Securities Administrators Association and other states to secure a multimillion dollar settlement with five investment firms, as reported by the Oregon DFR newsroom. The settlement follows an investigation into excessive commissions charged by Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade on small-dollar stock transactions, which collectively amounted to around $19 million nationwide over a five-year examination period.
In the details released by the Oregon DFR, affected Oregon investors will be receiving over $361,000 in restitution and interest, as the five firms were found charging unreasonable fees on equity transactions and trades that took place in the state. Edward Jones, for example, will repay $203,494.79 plus interest at 6 percent to Oregon investors, and also will pay a civil penalty of $100,000 according to the signed agreements, while other firms like LPL Financial and Stifel will also reimburse Oregon customers, along with paying respective civil penalties.
According to the Oregon DFR announcement, the agreements also include mandatory policy reviews and improvements by the firms to avert future overcharges: "The consent orders censure the firms for their actions and require the firms to review and improve their policies, procedures, and supervision efforts relating to commissions on equity transactions to prevent similar overcharges in the future."
TK Keen, the Oregon DFR Administrator, in a statement stressed the importance of state collaboration and customer vigilance, "Oregonians work hard for their money, and deserve a fair deal every time they invest or make a trade," he said, "When Oregonians were charged excessive commissions on everyday transactions, this office and our fellow regulators nationwide quickly stepped in and got restitution back to harmed Oregon investors."
Investors in Oregon are encouraged by Keen to check their account statements and to reach out to the division if they suspect any discrepancies or overcharges with the assurance that the division will fight for their rights "Whether it’s a few hundred dollars or a few thousand, the division will stand up for Oregon’s investors and hold firms accountable when they break the rules," Keen stated, promising continued vigilance against unreasonable financial practices.
