Robert W. Baird & Company

Kurta Law is investigating investment recommendations by brokers from Robert W. Baird & Company (CRD#: 8158). The firm’s regulatory history includes fines by FINRA and the SEC. Robert W. Baird & Company is a registered broker-dealer and investment advisory firm based in Milwaukee, Wisconsin.

Robert W. Baird & Company has also operated under the following names:

• Baird
• The DDK Group
• Chautauqua Capital Management
• Baird Private Wealth Management
• Baird Private Asset Management
• Baird Institutional Equities & Research
• Baird Generational Wealth Group
• Baird Equity Asset Management
• Baird Advisors

Fees and Conflicts of Interest

Robert W. Baird & Company describes the conflicts of interest associated with its brokerage and investment advisory businesses in its Customer Relationship Summary (Form CRS):

• Investors will pay transaction-based fees. When the firm acts as a principal, it earns compensation through markups or markdowns to the price of your investment. As an agent, the firm earns commissions and sales charges.
• Robert W. Baird & Company earns underwriting discounts from issuers when it acts as a principal.
• Some investments also charge ongoing commissions or trail fees. Trail fees are typically paid quarterly for as long as you hold the investment.
• Equity securities, exchange-traded funds (ETFs), and other investments may charge up-front commissions.
• Other investments, like mutual funds, unit investment trusts (UITs), and annuities, will disclose their sales charges and commissions in their prospectus or offering documents. These three types of investment also tend to charge higher fees.
• Similarly, stock and exchange-traded funds charge higher fees than bonds and other fixed income securities.
• Robert W. Baird & Company and its affiliates have an incentive to recommend proprietary products that they issue, sponsor, or manage because they earn compensation and other benefits when you invest in them.
• The firm also has revenue sharing agreements with third-party sponsors and managers of certain mutual funds and other investments.

• Robert W. Baird & Company typically charges an ongoing advisory program fee that is based on a percentage of the total value of your account assets and generally paid quarterly.
• Advisory account fees are typically wrap fees that include the cost of non-advisory services like trade execution. That means this fee is often higher than fees for advisory services in non-wrap fee accounts.
• You’ll also pay another asset-based fee if an outside manager services your advisory account.

Broker-Dealer Services

Robert W. Baird & Company offers stocks, bonds, and the following investment vehicles. Investors should be aware that some of these products may come with high fees and excessive risk:

• Preferred stocks
• Fixed income securities
• Mutual funds
• Exchange-traded funds (ETFs)
• Unit investment trusts (UITs)
• Variable annuities
• Closed-end funds
• Private funds

Regulatory Actions

Investors should know that Robert W. Baird & Company was fined $15 million by the SEC, according to the disclosures on its detailed BrokerCheck page.

FINRA Censure

On November 6, 2023, Robert W. Baird & Company consented to the entry of findings that it allegedly failed to provide clients associated with 2,300 accounts with mutual fund sales charge waivers and fee rebates to which they were entitled between January 2015 and March 2021.

According to a Letter of Acceptance, Waiver & Consent (AWC), the firm’s system of supervision allegedly relied on automated alerts to inform clients of discounts they were entitled to through rights of reinstatement. However, this alert allegedly failed to account for reinstatement periods exceeding 90 days and relied on a manual review of alerts.

Robert W. Baird & Company consented to a censure and restitution of $519,646.23 plus interest. You can access the full AWC here.

$15 Million SEC Fine

On September 29, 2023, the Securities and Exchange Commission filed cease-and-desist proceedings against Robert W. Baird & Company, alleging that firm employees used their personal devices for off-channel business communications.

The SEC alleged that these communications were sent and received starting in at least January 2019, and that the firm failed to preserve the majority of these communications. This allegedly caused the firm to fail to supervise its employees and may have impacted the SEC’s ability to investigate the firm.

The SEC censured Robert W. Baird & Company and fined it $15 million. The SEC also ordered the firm to cease and desist from Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-4 thereunder and Section 204 of the Investment Advisers Act of 1940 and Rule 204-2 thereunder.

Allegations of Unfair Commissions

On August 31, 2022, Robert W. Baird & Company consented to the entry of findings that it allegedly charged unfair commissions on 7,277 equity transactions from June 2019 through December 2020.

An AWC alleged that the firm’s published commission schedule listed a minimum $100 commission on equity transactions during this period. The AWC further alleged that the firm’s system of supervision did not flag these transactions for review despite it generally flagging transactions where clients were charged more than 5% of principal.

Robert W. Baird & Company consented to a censure, $150,000 fine, and restitution of $266,481 plus interest. You can access the full AWC here.

Alleged Failure to Disclose Conflict of Interest

On June 7, 2019, Robert W. Baird & Company consented to the entry of findings that it allegedly published seven research reports in 2013 about Issuer A without disclosing the conflict of interest that the research analyst who authored them was engaged in employment discussions with the issuer.

FINRA censured the firm and ordered it to pay a $150,000 fine. You can read the full AWC here.

Mutual Fund Allegations

On March 11, 2019, the SEC entered cease-and-desist proceedings against Robert W. Baird & Company, alleging that the firm failed to disclose its conflicts of interest relating to its recommendations of mutual fund share classes paying 12b-1 fees and its receipt of these fees in its Form ADV.

The SEC further alleged that the firm recommended or purchased mutual fund share classes that charged 12b-1 fees for its advisory clients when they were eligible for lower-cost share classes of the same funds.

The SEC censured the firm and ordered it to cease and desist from Sections 206(2) and 207 of the Investment Advisers Act of 1940. The firm was also subject to disgorgement of $3,946,606.10 and prejudgment interest of $212,561.34.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of the following current or former brokers associated with Robert W. Baird & Company who have allegations of misconduct on their records. If you have concerns about your broker’s conduct, contact a securities attorney.

• Bert Bennet: https://www.kurtalawfirm.com/blog/bert-bennet/ 
• Richard Reames: https://www.kurtalawfirm.com/blog/richard-reames/ 
• Brian Donnelly: https://www.kurtalawfirm.com/blog/brian-donnelly/ 
• Christopher Hain: https://www.kurtalawfirm.com/blog/christopher-hain/ 
• Michael Coombe: https://www.kurtalawfirm.com/blog/michael-coombe/ 
• Edmund Murphy: https://www.kurtalawfirm.com/blog/edmund-murphy/ 

Kurta Law Can Help

Investors who lost money working with a Robert W. Baird & Company broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.