Raymond James launches 'phenomenal' RIA-like pay structure to the $100 million set
The custodian hopes its keep-all-the-gravy pay scheme will keep its own advisors from defecting and win would-be RIAs
Very interesting compensation model conducive to advisory services, if accompanied by large scale support for fiduciary standing, atypical for a brokerage format,—this could be profound.
Wonder what an apples to apples payout comparison is?
I’m confused. At the top of the article it says advisors with Raymond James (over $100M AUM) will get to keep 100% of their advisory fees. Then later in the article it says advisors can keep 100% of their advisory fees and pay a quarterly fee to Raymond James. Then at the end of the article it outlines a fee structure where the Advisor must pay Raymond James. I’m certain this deal is an improvement at RJ, but I’m not sure if the advisory really gets to keep 100% of their advisory fees???
Hey Paul, I understand your confusion. Of course, there’s no free ride but basically what is happening here is Raymond James is trying to set up the structure more like an RIA – and less like a BD – which deals in “payouts.” So, on one-hand, yes advisors do get to keep 100% of the advisory fees, but yes, they must too pay quarterly fees to Raymond James.
We tried to get an apples-to-apples comparison using Raymond James’ current structure with the new structure and couldn’t get that. It doesn’t seem like it’s better for the bulk of advisors since 90% moved to this new structure.
These numbers are in the story. But advisors who use their own RIA will pay Raymond James 6 basis points, or $60,000 annually, on the first $100 million in discretionary management. Then, on the second $100 million in assets, those advisors will pay 3 basis points, or $30,000. Then, the fee goes down to 1 basis point, and advisors would not pay anymore than $100,000 in fees annually— even if they manage more than $300 million in assets, Curtis says. There is no incremental fee over $300 million in assets.
In this case, if an advisor managed $1 billion in discretionary assets, they would pay no more than $100,000 annually.
For advisors who utilize Raymond James Financial Services’ corporate RIA, the firm will charge an additional annual fee of 2 basis points on each advisor’s first $100 million of discretionary AUM, and 1 basis point on the next $100 million, up to a maximum of $30,000 annually. Again, if an advisor managed $1 billion on Raymond James’ RIA the annual fees would be no more than $30,000.
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After recruitment of minorities and women gets CEO-level attention at Raymond James, a program gets a dynamic leader
With ratios stuck in the teens, CEO Paul Reilly gives chief marketing officer at subsidiary Carillon Tower Advisers, Renee Baker, her shot at mission impossible -- getting Advisor Inclusion Networks to live up to its Orwellian name
August 24, 2019 at 4:25 AM
Last year's RIA chief departs Raymond James after ship sails without her at helm of RIA unit, leaving her anchored to COO role
Maria Daley took the reins after Bill Van Law's unexpected departure, but Greg Bruce came on in March to lead RIA Unit, a job she held on interim basis
June 6, 2019 at 2:16 AM
Raymond James finally names new RIA chief and, yes, he is a Schwab veteran
The St. Petersburg, Fla. broker-dealer parted ways with Bill Van Law -- a Merrill Lynch veteran -- a year ago; now it has a real RIA veteran in Greg Bruce
March 4, 2019 at 11:54 PM
Raymond James promotes yet another woman to a powerful position -- this time an alum of Duke, Columbia by way of Goldman Sachs -- to head the very LPL-intensive Northeast corridor
Jodi Perry puts Shannon Reid in charge of the wealth-intensive Maryland-to-Maine corridor
December 3, 2018 at 8:28 PM
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