Raymond James Financial Review and Overview

Raymond James Financial is a leading financial services company that has been around for over 90 years. It was founded in 1962 by Edward R. James.

The company has grown significantly over the years and is now one of the largest financial services firms in the world, with over $1.2 trillion in client assets. Raymond James Financial has a strong presence in the US, Canada, and internationally.

One of the key factors behind the company's success is its commitment to providing personalized service to its clients.

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At Raymond James Financial, you can expect a variety of fee structures for their investment advisory services. Clients may pay a percentage of assets under management, hourly charges, fixed fees, and/or commissions.

The firm's asset-based fee schedules and account minimums vary from program to program, so it's essential to review the specifics with your advisor. You can also negotiate asset-based fee and/or commission rates with your advisor.

Additional fees may apply, including safekeeping fees, charges/interest for maintenance and/or short positions, and fees for legal or courtesy transfers of securities.

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Raymond James offers a wide range of services to help clients achieve their financial goals.

Their services include investment solutions, financial planning, retirement planning, estate and charitable giving services, banking and lending services, insurance solutions, institutional services, private wealth services, tax strategies, and education planning.

The firm's services are tailored to specific types of clients, such as business owners who need business succession planning, retirement plans, and transition plan strategies.

For clients who have come into sudden wealth, Raymond James offers capital markets transaction, sale of real estate or other assets, and exercise of stock options.

The firm's investment solutions are divided into two categories: managed and advisory accounts. Managed accounts are managed by either a third-party manager or Raymond James, while advisory account programs allow clients to retain full investment authority.

Here are some of the specific services offered by Raymond James:

Fees can be complex, but let's break it down simply. Raymond James may charge clients a percentage of assets under management, hourly charges, fixed fees, and/or commissions for its investment advisory services.

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This means clients have a range of options to consider. They can negotiate either asset-based fee and/or commission rates with their advisor.

The firm will aggregate all of a client's fee-based accounts, and clients will pay a fee based on that aggregated account value. This is a key thing to keep in mind when managing multiple accounts.

Raymond James' asset-based fee schedules and account minimums vary from program to program. Clients may also pay additional fees outside of Raymond James' set asset-based advisory fee.

These extra fees can include safekeeping fees, charges/interest for maintenance and/or short positions, and fees for legal or courtesy transfers of securities.

Raymond James offers a wide range of portfolio options, including large- and small-cap equity, international equity, fixed income, and a variety of mutual funds and ETFs.

The firm recommends a diversified strategy that incorporates domestic and international equities and fixed income, as well as alternative asset classes like real estate and commodities.

This approach helps clients manage risk and achieve their investment objectives.

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A diversified investment strategy is key to managing risk and achieving long-term financial goals.

Raymond James recommends a diversified strategy that incorporates domestic and international equities and fixed income, as well as alternative asset classes like real estate and commodities.

Their Asset Management Services division offers individual and institutional clients a wide range of portfolio options, each with different investment approaches and risk profiles.

These portfolio options include large- and small-cap equity, international equity, fixed income, and a variety of mutual funds and exchange-traded funds (ETFs).

The firm tailors its recommendations to clients based on their investment objectives, financial situations, and risk tolerance.

They use these factors to recommend programs and strategies that suit each client's unique needs.

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You can choose to hire a third-party manager through Raymond James to manage your portfolio or provide recommendations in your account.

Many of Raymond James' managed account programs are offered through third-party separately managed account (SMA) programs.

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These SMA programs give clients the ability to choose investment management firms to manage their portfolios.

The management fee owed to SMA managers is negotiated by Raymond James, typically based on the manager's assets under management in certain Raymond James' programs.

Negotiations are also based on expected sales and administrative service levels.

Raymond James Financial has been involved in some notable controversies. In 2004, the SEC fined the company $6.9 million for failure to supervise a former broker.

The controversy centered around Dennis Herula, who was accused of participating in a Ponzi scheme that raised about $44.5 million from investors between 1999 and 2000. Herula himself raised about $16.5 million of investor funds.

Raymond James & Associates has received multiple notable accolades in the wealth management sector. The firm was recognized in the Forbes Top Wealth Advisors Best-In-State lists for both 2023 and 2024, developed by SHOOK Research.

Several Raymond James advisors were acknowledged in the Forbes Top Women Wealth Advisors Best-In-State rankings in both years. This highlights their commitment to excellence in financial advising.

The company has consistently been part of prestigious rankings such as Barron's Top 250 Private Wealth Management Teams.

Raymond James Financial Services, Inc. was fined $6.9 million in 2004 for failing to supervise a broker involved in a Ponzi scheme that raised $44.5 million from investors.

The firm's failure to supervise led to a significant financial loss for investors, with one broker raising $16.5 million of investor funds, most of which was later transferred to his wife's brokerage account.

In 2011, Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. were ordered to pay restitution of $1.69 million to 15,500 clients for charging excessive commissions on over 27,000 securities transactions.

The firms were also fined a total of $425,000, with RJA paying $225,000 and RJFS paying $200,000.

In 2016, Raymond James was fined $17 million for failing to establish and implement adequate Anti-Money Laundering (AML) procedures, which led to the firm's failure to properly prevent or detect suspicious activity.

The firm's former AML Compliance Officer, Linda L. Busby, was also fined $25,000 and suspended for three months.

In 2017, Raymond James was fined $2 million for failing to reasonably supervise email communications.

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At Raymond James Financial, account management is tailored to meet the unique needs of high-net-worth individuals.

Their Private Wealth Services program is designed for individuals and families with significant wealth, providing direct access to top professionals and senior leaders.

These professionals include wealth management consultants, portfolio solutions consultants, and product specialists who can offer personalized advice and guidance.

Raymond James also offers managed account programs through third-party separately managed account (SMA) programs, allowing clients to choose their own investment management firms.

To effectively manage your account, it's essential to understand the different lines of operation that Raymond James has to offer. Raymond James has four main lines of operation: private client group, capital markets, asset management group, and banking.

The private client group is a key part of Raymond James' operations, providing personalized service to high net worth individuals and families. This group offers a range of services, but the specifics are not mentioned in the article section.

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Capital markets is another important area of operation, made up of equity and fixed income capital markets as well as public finance. Equity and fixed income capital markets are both significant components of this division.

The asset management group is responsible for managing investments on behalf of clients, and it's made up of asset management services and Carillon Tower Advisers. Carillon Tower Advisers is a notable part of this group, but its specific role is not detailed in the article section.

Banking is the final main line of operation, providing a range of financial services to clients. This includes services such as deposits, loans, and investments, but the article section does not go into further detail about these services.

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Raymond James has a program specifically designed for high-net-worth individuals and families.

This program, known as Private Wealth Services, provides direct access to top professionals and senior leaders.

Investors in this program can expect to work with wealth management consultants, portfolio solutions consultants, and product specialists.

These experts can help clients make informed investment decisions and create tailored wealth management plans.

The firm's top professionals can also provide guidance on complex financial matters.

Raymond James' Private Wealth Services program is available to individuals and families with significant wealth.

Investors in this program can expect a high level of personalized service and attention.

The firm's top professionals can help clients achieve their financial goals.

In 2005, Raymond James was fined $2.75 million for lax supervision of producing branch managers.

This fine highlights the importance of proper supervision in the financial industry.

The investigation that led to the fine began with a single Raymond James manager who worked from her home in Wisconsin.

This manager handled approximately 700 accounts and sold mainly mutual funds and variable annuities.

The manager was accused of selling unsuitable aggressive mutual funds and variable annuities over a four-year period.

This incident underscores the need for careful supervision and oversight in the financial industry.

To start managing your finances with Raymond James, you'll need to open an account. This can be done by finding a local advisor through the firm's website.

To find a Raymond James advisor near you, simply visit the website and click on the "Find Advisor" button. You can then enter your zip code or the last name of a specific advisor into the search bar.

The results will show you all the advisors within a specified radius, which can be adjusted. From there, you can view each advisor or branch's website and reach out using the contact information provided.

To establish a managed account, you must fully fund the account to the required minimum account level and submit all account opening paperwork and documentation.

Once your account is established, you and your advisor will have a conversation about your needs, concerns, objectives, family, and values.

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Raymond James' fee structure is quite complex, with 97 disclosures reported on its Form ADV.

This can make it difficult to understand what fees you'll be paying, including those charged in addition to asset-based fees.

Make sure to ask questions and do your homework to fully understand the fees you'll be paying.

The asset-based fee for Raymond James' advisory programs may be allocated differently depending on the program, which can disincentivize advisors to recommend certain programs to clients with smaller accounts.

Be aware that this might affect the advice you receive, so it's essential to ask questions and understand the implications.

Raymond James Financial is investing heavily in technology, with a $500 million budget for the 2022 fiscal year, up from $400 million annually pre-pandemic.

This significant investment is focused on enhancing cybersecurity and improving applications. The firm has already named a new chief information security officer, Todd Ferguson, who is tasked with securing the firm's enterprise technology platform.

The firm's client access mobile app is being continuously updated to facilitate interactions between advisors and their clients. A video communication feature has been added, allowing clients and advisors to view the same information and have more efficient conversations about financial goals.

The firm has invested in various technologies, including a practice exchange succession planning platform, an alerts portal, and a proposal tool for financial advisors.

Auction rate securities were a major focus of investigation in 2011, with Raymond James agreeing to repurchase ARS sold to clients prior to February 13, 2008.

The firm sold $2.3 billion worth of ARS and was the auction dealer for over $725 million, making it a significant player in the market.

The ARS market crashed in 2008, leaving a huge impact on investors.

Raymond James agreed to pay a fine totaling $1.75 million to state regulators without admitting or denying the allegations.

At least 19 underwriters and broker-dealers were sued in class action suits following the market crash.

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Raymond James plans to invest a whopping $500 million in technology this year, a significant increase from its pre-pandemic spending of $400 million annually.

The firm's CEO, Paul Reilly, announced this investment during the Elevate National Conference in Nashville, where he stated that the funds would be used to enhance cybersecurity and improve its applications.

Raymond James has been prioritizing technology for a while now, focusing on improving communication between advisors and clients, as well as protecting client assets.

A key area of focus is enhancing cybersecurity, with the firm recently appointing a new chief information security officer, Todd Ferguson, who will oversee the firm's enterprise technology platform.

The firm's client access mobile app is also being continuously updated to facilitate interactions between advisors and clients, including the addition of a video communication feature.

Here are some of the technologies Raymond James has invested in: