Montana residents might receive a holiday windfall from the Office of the Commission of Securities and Insurance. A multi-state task force, including the Montana Auditor’s Office, investigated five major brokerage firms for allegedly imposing unreasonable minimum commissions, contravening federal law, and totaling nearly $19 million.
This summer, settlements with these firms were announced, and Montana Auditor James Brown reported that efforts to inform Montanans of their eligibility for refunds are in progress. “We take our consumer protection role pretty seriously,” Brown emphasized, highlighting the agency’s commitment to safeguarding Montanans’ finances.
Approximately $160,000 is to be returned to Montanans from these brokerage firms. Affected individuals will receive letters, with refunds either mailed or deposited directly into accounts. “We’re going to be giving a number of Montanans some good Thanksgiving news,” Brown remarked.
Earlier, the auditor’s office publicized national settlements with Edward Jones, LPL Financial, RBC Capital Markets, Stifel, Nicolaus and Company, and TD Ameritrade. Regulators from multiple states, including Alabama and Texas, probed claims of unjustified commissions exceeding 5% on small equity trades. From 2018 to 2025, the firms reportedly charged nearly $19 million in excess across over 1.1 million transactions.
In Montana, over 8,000 transactions were mischarged, leading to $160,000 in restitution. The settlements require the firms to pay fines, cover investigative costs, review policies, and cease charging unreasonable commissions permanently. “If a firm overcharges Montana investors, they can expect a knock on the door from my team,” Brown stated.
The commissioner’s office advises Montanans to monitor their mail for letters about these settlements and check for refunds. Residents may contact the state securities and insurance office at [email protected] or call 406-444-2040 for further information.
Earlier, a multi-state settlement with Edward Jones was announced, addressing front-load commissions. Another settlement with Vanguard Group, Inc. resolved an investigation into capital gains tax distributions from 2021.
