Raymond James has introduced a new compensation model for registered investment advisors that have at least $100 million in discretionary client assets under management.
This new model applies only to financial advisors affiliated with Raymond James Financial Services, who operate their own independent RIA or provide advisory services as an investment advisory representative of the firm’s corporate RIA. The program is aimed at "hybrid RIAs," advisors who charge a fee to some clients to manage their assets but also charge commissions, usually to other clients.
Qualifying advisors who operate their own independent RIA will retain 100 percent of their advisory fees and pay a quarterly fee to Raymond James based on their discretionary assets under management. RIAs with $300 million or more in discretionary AUM would pay an annual fee of $100,000, the maximum fee under the program.
“We are confident top advisors with a discretionary approach to managing their clients’ portfolios will appreciate the simplicity and transparency of this pricing structure,” said Scott Curtis, president of Raymond James Financial Services.
Currently, less than 100 of the 3,200 independent financial advisors RJFS supports qualify for the new price model. Designed to attract discretionary investment managers to RJFS, two additional teams have committed to join RJFS under this plan, according to Curtis.
Advisors operating as an investment advisory representative of Raymond James corporate RIA will pay an additional annual fee that is based on qualifying assets and capped at $30,000.
“Another significant point of differentiation between this new model and other RIA hybrid models,” said Curtis, “is that mutual fund 12b-1 trail commissions paid to Raymond James on fund shares in clients’ managed portfolios will be reimbursed to the advisors’ clients instead of retained by the firm, effectively reducing each client’s portfolio management costs. This unique structure reflects the client-first Raymond James culture."