The Financial Industry Regulatory Authority has hit five broker-dealers with charges over improper handling fees.

The firms that have been charged are Pointe Capital (now JHS Capital Advisors), John Thomas Financial, First Midwest Securities, A&F Financial Securities, and Salomon Whitney.

Pointe Capital, based in Boca Raton, FL, received the largest fine of $300,000, for charging customers up to $95 per trade in addition to commission, as well as additional violations including inadequate supervisory procedures.

New York’s John Thomas was fined $275,000, with customer handling fees ranging up to $75 per trade plus commission, and additional violations including effecting changes to its business operations without notifying the regulator, deficiencies in complaint reporting, supervisory controls and certifications, branch office supervision and recordkeeping.

First Midwest Securities of Bloomington, IL was fined $150,000, with charges of up to $99 per trade plus commission, and additional violations such as unfair and unreasonable markups/markdowns and inadequate written supervisory procedures.

A&F Financial Securities, based in Syosset, NY, was fined $125,000. Its customer handling fees reached up to $65 per trade in addition to a commission, and additional violations included inadequate supervisory systems and procedures, and failure to comply with continuing education requirements.

Lastly, Salomon Whitney of Babylon Village, NY, was fined $60,000, with charges as high as $69 per trade in addition to commission.

The firms have agreed to amend their procedures accordingly, including “fully and accurately” disclosing the specific service performed and the related fee on communications with customers, according to FINRA.

"Trade confirmations and fee schedules must clearly reflect commission charges, and firms cannot disguise commissions by improperly describing them as charges for ancillary services. FINRA will continue to look closely at any firms that engage in these practices," said Brad Bennett, FINRA executive vice president and chief of enforcement.

The latest cases come after a review of improper fees, such as where firms were routinely charging customers for handling fees far above the cost of the direct handling-related services the firm was actually undertaking.