Dually registered financial advisors with at least $100 million in discretionary client assets under management will retain 100% of their advisory fees under a new compensation model that Raymond James Financial Services is rolling out April 1.
The ongoing intense competition for breakaway brokers appears to have forced Raymond James to introduce the compensation initiative, which also re-directs mutual fund 12b-1 trail commissions to clients instead of the firm.
Overall, recruiters are viewing the new model as making Raymond James more competitive in retaining and attracting top hybrid advisors.
Under the new compensation model once a financial advisor reaches $108,000 in fees, he or she doesn’t have to share more profit with Raymond James. Under the old plan, the firm would continue to receive a share of the advisors’ revenue, without limit.
Advisors considering going independent who want to maintain a hybrid status will most likely take a look at this.