Finra arbitrators ordered Deutsche Bank to pay more than $16 million to Raymond James and two financial advisors in a dispute over fees.
Raymond James & Associates and Raymond James Financial, as well the firm's registered representatives Michael Thomas Kuras and Patrick Lyons Marsh, filed a claim against Deutsche Bank Securities Inc. and Deutsche Bank in September 2021 alleging that the bank failed to pay revenue share payments and residual fee trailers on 10 commercial loans.
Raymond James purchased Deutsche Bank’s U.S. private wealth unit in 2016. The brokers brought over in that transaction operate under the Alex. Brown brand.
The brokerage and reps cited breach of contract, accounting, and breach of implied covenant of good faith and fair dealing. They requested $48,962,122 in damages.
The three-person Financial Industry Regulatory Authority Inc. found Deutsche Bank liable on all 10 loan transactions, according to the award document posted Tuesday. They awarded Raymond James $16,396,992 in compensatory damages and accrued interest. The arbitrators also ordered Deutsche Bank to pay interest on the award, which will push the amount higher.
The arbitrators ordered Deutsche Bank to pay the award to Raymond James. They ruled that the brokerage was “jointly and severally responsible” for remitting any portion of the award to which Kuras and Marsh are entitled.
Deutsche Bank denied the allegations and requested dismissal of all the claims, according to the award document.
Kuras and Marsh moved from Deutsche Bank to Raymond James after the acquisition in 2016, according to their BrokerCheck records.
Both Raymond James and Deutsche Bank declined to comment on the award.
Financial Advisor IQ first reported on the arbitration decision.
Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.
Futures indicate stocks will build on Tuesday's rally.
Cost of living still tops concerns about negative impacts on personal finances
Financial advisors remain vital allies even as DIY investing grows
A trade deal would mean significant cut in tariffs but 'it wont be zero'.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
