Raymond James (RJF) CEO Paul Reilly says the company’s planned purchase of Deutsche Bank’s U.S. wealth operations “accelerate some shifts we are making” in boutique-style wealth offerings.
“Now we can offer these ultra-high-net-worth services to our existing advisors and better serve their clients,” Reilly said in an interview after speaking to a crowd of about 1,700 independent advisors and 1,400 other guests Wednesday at the firm’s yearly conference in Nashville.
This means the firm will be giving more HNW clients options like multicurrency reporting, alternative investments, mortgage products and other concierge services.
The Deutsche deal should be wrapped up in the fall, the company says. This means about 180 advisors with average yearly fees and commissions of $1.5 million are joining the firm, which will be renamed Alex. Brown (the group’s original name.)
What Your Peers Are Reading
As for the fact that more than 90% of Deutsche advisors are moving to Raymond James, “This is way above our expectations,” Reilly said.
Raymond James’ top 800 reps also produce yearly fees and commissions of $1.5 million and up. And the top 200 reps produce about $2.4 million or higher.
The most recent average yearly production figure for its independent advisors is $560,000.
Views on DOL Fiduciary Rule
With advisors and the press, the CEO also is upfront about what the new Department of Labor fiduciary standard means for the industry. “It’s well intended but very impractical,” Reilly said.
When asked specifically if he and the firm support moves in Congress to block the legislation, the CEO expressed resignation: “It’s frustrating. I believe we should sit down together and work things out,” he explained.
As for regulating the financial services industry, “It would be great to have something like a Simpson-Bowles [bipartisan National Commission on Fiscal Responsibility and Reform] to work this out, get [the bad actors] out of the industry and support those that are doing the right thing,” he explained.