Advisors Deliver Two-Thirds of Raymond James Revenue, Says CEO Reilly

As for recruiting, he said that Raymond James had seen more movement to its employee-based advisor channel—one of five channels in the Raymond James Private Client Group. Growth in each channel, he said, "varies with the times" and the performance of the markets, and he suggested that part of the industrywide move toward an RIA model was attributable to "regulatory arbitrage." Visits to Raymond James' St. Petersburg home office—a requirement for prospective advisors so both sides can judge the cultural fit—have risen to nearly the levels of 2008-2009, Reilly reported. While Raymond James does pay bonuses—or "transition assistance," as he called them—he said the firm does so at an "economically feasible level" that is lower than some competitors, but said representatives who do join "make it up" through Raymond James' higher payout levels.

Those advisors who do join Raymond James, he said, do so because of the culture, such as the Morgan Keegan reps, who found themselves very comfortable with the similar corporate culture at RJ. Those coming from wirehouses, he said, were fleeing a more bureaucratic, product- and process-oriented culture for the more "advisor-oriented" atmosphere that prevails at Raymond James.