Raymond James Financial

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Raymond James
Type Public
Traded as NYSERJF
Industry Investment services
Founded 1962
Headquarters St. Petersburg, Florida, United States
Key people
Products Financial services, securities and insurance brokerage, investment banking, asset management, banking and cash management, trust services
Revenue Increase 4.5 billion USD (2013)
Net income Increase $367 million USD (2013)
Website www.raymondjames.com

Raymond James Financial is a 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 March 31, 2014, Raymond James has approximately 6,200 financial advisors serving more than 2.5 million accounts in approximately 2,500 locations throughout the United States, Canada and overseas. Total client assets under management are approximately $458 billion.[1] Raymond James corporate headquarters is located in St. Petersburg, Florida.

History[edit]

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]

Raymond James businesses[edit]

Private Client Group[edit]

The Private Client Group is Raymond James’s retail segment, which consists of 6,200 financial advisors, affiliated as traditional employees, independent contractors, independent registered investment advisors, or employees in local banks or credit unions. These financial advisors provide securities transaction, investment advisory and financial planning services to individual investors through their affiliates.[5]

Capital Markets[edit]

The Capital Markets group is Raymond James’s institutional segment. Equity Capital Markets includes Investment Banking, Equity Research, and Equity Sales and Trading. Fixed Income includes Municipal and Taxable Fixed Income, Public Finance, and Fixed Income Research. In addition, Raymond James Tax Credit Funds syndicates investments in low-income housing.[5]

Asset Management Group[edit]

The Asset Management Group includes Asset Management Services which provides fee-based individual portfolio management for Raymond James clients. Subsidiary firm Eagle Asset Management provides institutional and individual investors with Raymond James and other broker/dealer platforms with separately managed account options and mutual fund products. Also included in this segment is Raymond James Trust N.A.[5]

Raymond James Bank[edit]

Raymond James Bank is a federally chartered national bank that provides residential, consumer and commercial loans, as well as FDIC-insured deposit accounts. The bank also purchases residential whole loans and is an active participant in corporate loan syndications.[5]

Other[edit]

The firm also includes proprietary capital operations, as well as international joint-venture operations in emerging markets, stock loan/borrow, and miscellaneous other corporate activities and overhead.[5]

Commitment to the Arts[edit]

The Tom and Mary James/Raymond James Financial Art Collection, located at the corporate headquarters in St. Petersburg, Florida, consists of more than 2,200 works of art, and includes paintings, sculptures, graphics, and drawings. Ninety-five percent of the collection is owned by Tom and Mary James. It is also one of Florida's largest private art collections. The collection also includes pieces by Alexander Calder, Salvador Dalí, Roy Lichtenstein, Joan Miró, W. Stanley Proctor, James Rosenquist, and Andy Warhol. Raymond James also supports many organizations through sponsorships, including Raymond James Stadium, American Stage Theatre Company at Raymond James Theatre, the Raymond James Gasparilla Festival of the Arts and more.

Community involvement[edit]

Each August during Raymond James Cares Month, associates and affiliates concentrate their community service efforts in their own communities as part of the Raymond James Cares corporate volunteer program.[6]

Additionally, Raymond James sets aside a percentage of profits for charitable purposes. Included in that allocation is our annual United Way fundraising campaign, a tradition that goes back to 1970, during which employee contributions are matched by the firm.[7]

Raymond James Stadium[edit]

Raymond James first purchased the naming rights to Raymond James Stadium in 1998; in 2006, the firm extended the contract until 2015. The stadium, located in Tampa, Florida, is home to the NFL’s Tampa Bay Buccaneers and the University of South Florida Bulls. Raymond James Stadium also hosts the New Year’s Day Outback Bowl, as well as concerts and special events. It was also the host of Super Bowl XXXV on January 28, 2001 and Super Bowl XLIII on February 1, 2009.[8]

Recent awards[edit]

2014[edit]

  • 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 for the second consecutive year.[10]

2013[edit]

  • 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.[12]
  • 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.[13]

Controversies[edit]

Auction rate securities[edit]

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.[14][15]

Excessive commissions[edit]

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.[16]

References[edit]

  1. ^ "RAYMOND JAMES FINANCIAL REPORTS FEBRUARY OPERATING STATISTICS" (Press release). Raymond James Financial. 19 March 2014. Retrieved 2014-03-19. 
  2. ^ "Who Is Raymond James?". Raymond James Stadium. Retrieved August 11, 2014. 
  3. ^ "Raymond James Company History". Raymond James Financial. Retrieved 2014-05-05. 
  4. ^ "Raymond James to Buy Morgan Keegan & Company". New York Times. 11 January 2012. Retrieved 2012-06-17. 
  5. ^ a b c d e "Fourth Quarter: Quarterly Report 2010". Raymond James Financial. Archived from the original on 15 July 2011. 
  6. ^ "Social Responsibility". Raymond James Financial. Retrieved 2014-05-23. 
  7. ^ "Social Responsibility". Raymond James Financial. Retrieved 2014-05-23. 
  8. ^ "Raymond James Stadium". Raymond James Financial. Retrieved 2012-06-17. 
  9. ^ "BISA Technology Innovation Award". BISA. 
  10. ^ "Fortune's World's Most Admired Companies". CNN Money. 
  11. ^ "Fortune's World's Most Admired Companies". CNN Money. 
  12. ^ "BISA Technology Innovation Award Past Recipients". Bank Insurance & Securities Association. 
  13. ^ "Best Investment Banks 2013: Sector Winners". Global Finance. 
  14. ^ "Raymond James Announces Agreement to Repurchase Auction Rate Securities". Raymond James Financial. 2011-06-29. Retrieved 2012-06-17. 
  15. ^ "Raymond James auction-rate suit first to be upheld". InvestmentNews. 2010-09-09. Retrieved 2012-06-17. 
  16. ^ "FINRA Orders Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. to Pay $1.69 Million in Restitution for Charging Unfair Commissions" (Press release). Financial Industry Regulatory Authority. 2011-09-29. Retrieved 2012-06-17.