In a wide-ranging interview on May 23, Raymond James’ Chet Helck provided an update on the company’s line of credit products and spoke of how the recent acquisition of Morgan Keegan will provide benefits to all of Raymond James’ advisors. He also addressed the importance and the challenges of applying a fiduciary standard to all professional advice givers.
Speaking in Orlando at Raymond James Financial Services’ professional development national conference, Helck, the head of RJ’s Private Client Group, reported that the line of credit offering, which he said was rolled out in March specifically for use by high-net-worth clients, was “more of a defensive strategy than an offensive” move.
Bigger banks were providing similar services, he said, making loans for the wealthy, often business owners or other professionals, and using as collateral the client’s liquid securities. “We can’t outspend the bigger banks, but we can be nimbler,” Helck said. He noted that the rate of the loans, made through Raymond James Bank, are based on the amount of collateral pledged, not the amount of the loan.