Raymond James Financial

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Raymond James
Public
Traded as NYSE: RJF
Industry Investment services
Founded 1962
Headquarters St. Petersburg, Florida, United States
Key people
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Products Financial services, securities and insurance brokerage, investment banking, asset management, banking and cash management, trust services.
Revenue Increase 4.86 billion USD (2014)
Increase $480 million USD (2014)
Website www.raymondjames.com

Raymond James Financial is an American diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies that engage primarily in investment and financial planning, in addition to investment banking and asset management. Raymond James Financial has three wholly owned broker-dealers, Raymond James & Associates (RJ&A), Raymond James Financial Services (RJFS) and Raymond James Limited (RJL); and Raymond James Investment Services Limited (RJIS), a majority-owned independent contractor subsidiary in the United Kingdom.

As of June 24, 2015, Raymond James has more than 6,500 financial advisors serving nearly 2.7 million client accounts in more than 2,600 locations throughout the United States, Canada and overseas. Total client assets under management are approximately $500 billion.[1] Raymond James corporate headquarters is located in St. Petersburg, Florida.

History

Raymond James was founded in 1962 when St. Petersburg broker Robert James formed Robert A. James Investments. In 1964, it merged with Raymond & Associates, founded by Edward Raymond in 1963, to form Raymond James & Associates.[2] Robert James' son, Tom, joined his father's company in 1966 and assumed leadership of the firm in 1970. The firm thrived under Tom James’ leadership and became a public company in 1983. In 2002, Fortune Magazine named Raymond James one of the 1000 Most Admired Companies. After decades of success, Tom turned over the CEO's post to Paul Riley in 2010, but still serves as executive chairman.[3]

On April 2, 2012, Raymond James merged with Morgan Keegan & Company. The merger created one of the country’s largest full-service wealth management and investment banking firms not headquartered in New York.[4]

In January 2013, the firm reported 100 consecutive quarters of profitability.[5]

Recent awards

2015

  • Raymond James received 15 awards in the 2015 StarMine Analyst Awards, ranking the firm third among all brokers in cumulative StarMine awards for the U.S.[6]

2014

  • Raymond James Financial was named the Benefactor of the Year and the large company category winner at the 2014 Tampa Bay Business Journal's Corporate Philanthropy Awards.[7]
  • Financial Planning ranked Raymond James the top independent broker-dealer for women.[8]
  • Raymond James received the Bank Insurance and Securities Association (BISA) Technology Innovation Award for the firm’s Client Center.[9]
  • Raymond James Financial was named among the world’s most admired securities company by Fortune magazine[10]

2013

  • Fortune magazine ranked Raymond James Financial the fifth most admired securities company in the world.[11]
  • Raymond James received the Bank Insurance and Securities Association (BISA) Technology Innovation Award for the firm’s Goal Planning & Monitoring software.[9]
  • Raymond James was named the best real estate investment banking practice in the world for the second consecutive year on Global Finance magazine’s World’s Best Investment Banks 2013 list.[12]

Controversies

Auction rate securities

On June 29, 2011, Raymond James announced an agreement to repurchase at par auction rate securities (ARS) sold to clients through its domestic broker/dealer subsidiaries prior to February 13, 2008. The agreement—reached with the Securities and Exchange Commission and with state securities regulators led by Florida and Texas—resolved more than three years of investigation related to activity in the ARS market. Without admitting or denying the allegations, the firm also agreed to pay a fine totaling $1.75 million to the state regulators, but was not fined by the SEC.

As a result of this agreement, a pre-tax charge of $45 million was recorded in the quarter ending June 30, 2011. This charge was primarily a result of an estimate of the current fair value of the securities to be repurchased by Raymond James being less than their par value. It is expected that the ultimate realized loss will be substantially less as issuers refinance or redeem these securities, interest rates rise and/or collateral values improve.

Raymond James sold $2.3 billion worth of ARS, underwrote $1.2 billion, and was the auction dealer for over $725 million. Since the $330 billion market for ARS crashed in 2008, at least 19 underwriters and broker-dealers were sued in class action suits.[13][14]

Excessive commissions

In September 2011, the Financial Industry Regulatory Authority ordered Raymond James & Associates, Inc. (RJA) and Raymond James Financial Services, Inc. (RJFS) to pay restitution of $1.69 million to 15,500 clients for charging excessive commissions on more than 27,000 securities transactions. The trades were made in client accounts between 2006 and 2010. FINRA also fined RJA $225,000 and RJFS $200,000.[15]

References

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