In response to the DOL fiduciary rule, Raymond James Financial Services will be changing its compensation plan so that all production is paid off of one grid.

The move comes at a time when many broker-dealers are wrestling with the issue of broker payouts in expectation that they will face more scrutiny in a post-DOL world. Some observers speculated that the switch to a single payout grid was designed to eliminate the perception of potential conflicts of interest.

Next year, the independent contractor unit of Raymond James Financial will switch to a single payout grid that starts at 81 percent for trailing 12-month branch production up to $500,000, topping out at 90 percent at the $10 million-plus level. 

Depending on product mix and production, the changes could represent a cut in pay for some advisors. Currently, mutual fund commissions are paid out at 90 percent with a ticket charge of $26. Equities earn 85 percent with a ticket charge of $22 plus 1.5 cents per share, and insurance sales get 85 percent with a ticket charge of $49. Rep-managed fee accounts now earn an advisor a payout of 85 percent or higher.

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