Last Updated: February 2025
For investors considering working with or currently working with Janney Montgomery Scott LLC, understanding the firm’s regulatory history and track record of customer complaints is crucial. As a major regional brokerage firm headquartered in Philadelphia, Janney Montgomery Scott has faced numerous regulatory actions and customer disputes over the years that raise serious concerns about their supervision and compliance practices.
About Janney Montgomery Scott
Janney Montgomery Scott LLC (CRD #463) is a broker-dealer and investment advisory firm founded in 1832. The firm operates from its headquarters at 1717 Arch Street in Philadelphia and is registered with FINRA, the SEC, and 53 U.S. states and territories. As of 2024, the firm is owned by June Purchaser LLC which holds a 75% or greater ownership stake.
Major Regulatory Issues and Trends
Analysis of FINRA BrokerCheck records reveals concerning patterns in Janney Montgomery Scott’s regulatory history:
Recent Regulatory Actions
- In July 2024, FINRA fined the firm $150,000 for failing to accurately report certain transactions to the Municipal Securities Rulemaking Board and TRACE reporting system
- In 2022, the firm paid $32,255 in restitution to customers and was fined $40,000 by Delaware regulators for supervision failures
- In October 2022, FINRA imposed a $100,000 fine for failing to supervise representatives who recommended unsuitably high concentrations in energy sector securities
Supervision Problems
A recurring theme across many regulatory actions involves inadequate supervision of financial advisors and failure to enforce written supervisory procedures. Notable examples include:
- Failure to prevent unsuitable recommendations and over-concentration in risky sectors
- Inadequate monitoring of trading activity and customer accounts
- Insufficient oversight of communications with the public
- Problems with maintaining accurate books and records
Customer Protection Issues
The firm has also faced numerous regulatory actions related to failures in protecting customer interests:
- Mutual fund overcharges requiring significant customer restitution
- Auction Rate Securities violations leading to buyback requirements
- Unsuitable investment recommendations
- Failures to disclose material information to customers
Major Regulatory Actions and Settlements
Some of the most significant regulatory actions against Janney Montgomery Scott include:
- 2024 FINRA Settlement ($150,000) – For failures in trade reporting accuracy and supervisory systems
- 2022 FINRA Settlement ($100,000) – Related to unsuitable energy sector recommendations and supervision failures
- 2020 Connecticut Settlement – Required payment of $250,000 for supervision failures and inadequate customer protection measures
- 2019 SEC Settlement ($875,000) – For disclosure violations and email retention failures
- 2015 FINRA Settlement ($1,200,000) – Related to mutual fund sales practice violations
Problem Financial Advisors
We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.
Next Steps for Investors
If you have lost money while investing with Janney Montgomery Scott or believe you have been subject to unsuitable investment recommendations or inadequate supervision, you have rights and may be entitled to recover your losses. The investment fraud attorneys at Patil Law, P.C. have extensive experience handling claims against major broker-dealers like Janney Montgomery Scott.
Contact us today at 800-950-6553 for a free consultation to discuss your situation and explore your legal options. Our team can review your account statements and investment history to determine if you have a viable claim for recovery.
Frequently Asked Questions About Broker-Dealer Claims
How long do I have to file a claim against Janney Montgomery Scott?
The time limits for filing claims against broker-dealers can vary depending on the specific circumstances and jurisdiction. Generally, FINRA arbitration claims must be filed within six years of the event giving rise to the dispute. However, some state laws may provide different deadlines. It’s crucial to consult with an attorney as soon as you suspect wrongdoing to ensure you don’t miss any important deadlines.
What types of losses can I recover in a claim against a broker-dealer?
Investors may be able to recover various types of losses, including:
- Direct investment losses
- Lost opportunity costs
- Interest on losses
- Account fees and commissions
- Attorney fees and costs (in some cases)
- Punitive damages (in cases of serious misconduct)
How does the FINRA arbitration process work?
FINRA arbitration is typically a three-step process:
- Filing a claim and selecting arbitrators
- Discovery and pre-hearing conferences
- Final hearing where both sides present their cases
Most cases settle before reaching a final hearing, but having experienced legal representation is crucial throughout the process.
How much does it cost to pursue a claim?
At Patil Law, P.C., we typically handle investment fraud cases on a contingency fee basis, meaning we only get paid if we recover money for you. Initial consultations are free, and we’ll evaluate your case without any upfront cost or obligation.
How do I know if I have a valid claim?
Common signs that you may have a valid claim include:
- Unexpected or excessive losses
- Unauthorized trading
- Recommendations that didn’t match your investment objectives
- Lack of diversification
- Failure to disclose important risks
- High-pressure sales tactics
Contact our experienced investment fraud attorneys for a detailed evaluation of your specific situation.
This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.