Illinois Secretary of State Alexi Giannoulias has announced that nearly $950,000 will be returned to Illinois investors as part of a $19 million multi-state settlement involving five major brokerage firms accused of charging unfair fees on small stock trades.
The firms—Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade—were found by regulators in several states to have charged unreasonably high commissions on small-dollar trades over a five-year period, negatively impacting everyday investors. The settlement is part of a broader enforcement action coordinated through the North American Securities Administrators Association’s (NASAA) Broker-Dealer Section, with assistance from the Illinois Secretary of State’s Securities Division.
“These settlements send a strong message that financial firms must treat investors fairly and follow the law,” Giannoulias said. “Small Illinois investors should not lose large shares of money because of unfair fees that can take a significant bite out of their investments and savings. Our office remains committed to protecting Illinois investors and holding firms accountable when they violate securities laws.”
As part of the Illinois settlement, the firms must return money to affected Illinois investors, cease improper fee practices, and pay $175,000 in fines to the state. In total, Illinois investors will receive at least $948,551.
Impacted Illinois investors will be notified directly by mail from the brokerage firms before payments are issued. Under the settlement terms, restitution will be distributed on a rolling basis throughout the spring and summer.
In most cases, notification letters will be mailed about a week before restitution checks are sent or account credits are applied. If a notification letter or payment is returned as undeliverable, the firm must notify the Illinois Secretary of State’s Securities Department and attempt a second delivery if an updated address is available. If no valid address can be found, the funds will be transferred to the Illinois State Treasurer’s Unclaimed Property Division.
Giannoulias encourages investors with questions or concerns about their investments or financial professionals to contact the Illinois Secretary of State Securities Department at (800) 628-7937. The Securities Department licenses and regulates financial services in Illinois and works to ensure compliance with state securities laws. Additional information is available at www.ilsos.gov.