Practice Strategies
Raymond James Introduces New Compensation Model For Hybrid RIAs
Raymond James has rolled out a new compensation model aimed at financial advisors with at least $100 million in discretionary client assets under management.
Advisors operating under the new model - which comes into effect on April 1 - will retain 100 per cent of their advisory fees and pay a quarterly fee to Raymond James, based on each practice’s discretionary AuM.
Qualifying advisors can choose whether to establish and operate their own independent RIA or provide advisory services as an investment advisory representative of the firm’s corporate RIA.
Scott Curtis, president of Raymond James Financial Services, added that mutual fund 12b-1 trail commissions (an annual marketing or distribution fee) paid to Raymond James on fund shares in clients’ managed portfolios will be reimbursed to the advisors’ clients instead of retained by the firm.
Additionally, those advisors who qualify for and select the hybrid model will be eligible for Raymond James Financial Services recognition council memberships.
They will also have access to the firm’s resources including advisor and client-facing technology tools, practice management educational programs, alternative investment products, trust services, lending, insurance and investment banking, as well as compliance support and legal services, Curtis said.