Raymond James Financial

{{Short description|American multinational independent investment bank and financial services company}}

{{Infobox company

| name = Raymond James Financial, Inc.

| logo = Raymond James wordmark.svg

| logo_size = 250

| image = RJFStPete.JPG

| image_caption = Headquarters in St. Petersburg, Florida

| type = Public

| traded_as = {{ubl|{{NYSE|RJF}}|S&P 500 component}}

| industry = Investment services

| genre =

| fate =

| predecessor =

| successor =

| founded = {{Start date and age|1962}}

| founder = Robert James

| defunct =

| hq_location = St. Petersburg, Florida, U.S.

| locations =

| area_served =

| key_people = {{plainlist |

Tom James (chairman emeritus)
Paul Reilly (chairman and CEO)
Paul Shoukry (president)}}

| services = Retail banking, commercial banking, insurance, investment banking, mortgage loans, private banking, private equity, wealth management, credit cards, financial analysis

| revenue = {{increase}} {{US$|14.92 billion|link=yes}} (2024)

| operating_income = {{increase}} US$2.643 billion (2024)

| net_income = {{increase}} US$2.063 billion (2024)

| aum =

| assets = {{increase}} US$82.99 billion (2024)

| equity = {{increase}} US$11.67 billion (2024)

| owner =

| num_employees = {{circa|19,000}} (2024)

| parent =

| divisions =

| subsid =

| website = {{URL|raymondjames.com}}

| footnotes = Financials {{as of|2024|09|30|lc=y|df=US}}.{{cite web |title=Raymond James' FY 2024 Annual Report (Form 10-K) |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/720005/000072000524000069/rjf-20240930.htm |publisher=U.S. Securities and Exchange Commission |date=26 November 2024}}

}}

Raymond James Financial, Inc. is an American multinational independent investment bank and financial services 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. The company is headquartered 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.{{Cite news| url = http://raymondjamesstadium.com/about-the-stadium/who-is-raymond-james/| title = Who Is Raymond James?| publisher = Raymond James Stadium| access-date = August 11, 2014| archive-date = September 16, 2016| archive-url = https://web.archive.org/web/20160916190108/http://raymondjamesstadium.com/about-the-stadium/who-is-raymond-james/| url-status = dead}} Robert James' son, Tom James, joined in 1966 and assumed leadership of the firm in 1970. The firm planned to go public in 1969, but market conditions delayed its plan until 1983.{{Cite web|title = U.S.'s Raymond James seeking to acquire Canadian equity management firm|url = http://business.financialpost.com/news/fp-street/u-s-s-raymond-james-seeking-to-acquire-canadian-equity-management-firm|website = Financial Post|access-date = 2016-01-29}} Tom turned over the CEO's post to Paul Reilly in 2010,{{Cite news | title = Raymond James Company History | url = http://www.raymondjames.com/about/timeline/ | publisher = Raymond James Financial| access-date = 2014-05-05}} and his title as Chairman of the Board to Paul Reilly in 2016.{{Cite web|url=http://www.investmentnews.com/article/20161201/FREE/161209991/tom-james-to-step-down-as-chairman-of-raymond-james-early-next-year|title=Tom James to step down as chairman of Raymond James early next year|last=Kelly|first=Bruce|website=www.investmentnews.com|access-date=2017-07-18}} He remains on the leadership team as Chairman Emeritus.

In 2012, the firm purchased the Canadian assets of Allied Irish Bank. In April 2012, they merged with Morgan Keegan & Company, creating one of the country's largest full-service wealth management and investment banking firms not headquartered in New York.{{Cite news | title = Raymond James to Buy Morgan Keegan & Company | url = https://dealbook.nytimes.com/2012/01/11/raymond-james-near-deal-to-buy-regions-morgan-keegan/ | work = New York Times | date = 11 January 2012 | access-date = 2012-06-17}}

As of the fiscal quarter ending September 30, 2022, the firm had delivered 139 consecutive quarters of profitability.{{Cite news|url=https://www.raymondjames.com/about-us/by-the-numbers|title=Raymond James By the Numbers|date=30 June 2018|access-date=2018-10-15|publisher=Raymond James Financial}} In June 2016, it was listed as a Fortune 500 company for the first time.{{cite web|url=http://fortune.com/2016/06/06/fortune-500-companies-making-debuts/ |title=Here Are The 15 New Companies Joining The Fortune 500|publisher=fortune.com |date=2016-06-06 |access-date=2016-06-07}}

In September 2016, the firm announced its acquisition of Deutsche Bank Wealth Management's US private client services unit, Alex Brown & Sons.{{Cite web|url=https://www.raymondjames.com/news-and-media/press-releases/2016/09/06/rjf-completes-acquisition-of-deutsche-bank-wealth-managements-us-private-client-services-unit|title=Press Release - News & Media {{!}} Raymond James|website=www.raymondjames.com|access-date=2017-07-18}}

In April 2017, the firm purchased Reams Asset Management from UMB Financial Corporation. The purchase, which amounted to $172.5 million, included Scouts Investments.{{Cite web|url=https://www.investmentnews.com/industry-news/news/raymond-james-to-pay-172m-for-scout-investments-71142|title=Raymond James to pay $172M for Scout Investments|date=20 April 2017}}

As of September 30, 2022, Raymond James has approximately 8,700 financial advisors throughout the United States, Canada and overseas. Total client assets under management are approximately $1.09 trillion.

= Current operations =

Raymond James has four main lines of operation: private client group, capital markets (made up of equity and fixed income capital markets as well as public finance), asset management group (made up of asset management services and Carillon tower advisers) and banking.{{cite web|title=Raymond James Financial|url=https://www.reuters.com/finance/stocks/company-profile/RJF.N|website=Reuters}}{{cite web|title=RAYMOND JAMES FINANCIAL INC.(RJF)- NYSE|url=http://investorsbuz.com/symbol/raymond-james-financial-inc-rjf-nyse/|website=Investorsbuz.com|access-date=19 December 2016}}

Controversies

=''SEC v. Dennis Herula''=

In 2004, the SEC fined Raymond James Financial Services, Inc. $6.9 million for failure to supervise former broker Dennis Herula. Herula was accused of participating with others in a Ponzi scheme that raised about $44.5 million from investors in 1999-2000. Herula himself raised about $16.5 million of investor funds, most of which was later transferred to his wife's brokerage account at Raymond James. He was arrested in Bermuda and pleaded guilty to criminal charges of wire fraud and sentenced to 188 months in prison.{{Cite web | title = RJ unit takes internal heat | url = http://www.investmentnews.com/article/20070507/FREE/70507007 | work = InvestmentNews | date = 2007-05-07 | access-date = 2012-06-17}}{{Cite web | last = Churchill | first = John | title = From Brokerage House to the Big House | url = http://wealthmanagement.com/news/brokerage-house-big-house | work = WealthManagement.com | date = 2005-02-17 | access-date = 2012-07-06}}{{Cite web | agency = Reuters | title = Regulators Charge Brokerage Firm Raymond James | url = http://www.stockbroker-fraud.com/lawyer-attorney-1133800.html | publisher = Shepherd Smith Edwards & Kantas LTD LLP | date = 2004-09-13 | access-date = 2012-06-17}}{{Cite web | last = Associated Press | title = Could you fall for investment fraud? | url = https://www.nbcnews.com/id/wbna14190333 | publisher = NBC News | date = 2006-08-04 | access-date = 2012-06-17}}

=Supervision of branch managers=

In 2005, the National Association of Securities Dealers fined Raymond James $2.75 million for lax supervision of producing branch managers. The investigation began with one Raymond James manager, who worked from an office in her Wisconsin home, handling approximately 700 accounts and selling mainly mutual funds and variable annuities. The Wisconsin manager was accused of selling unsuitable aggressive mutual funds and variable annuities over a four-year period.

=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.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.{{Cite web | title = Raymond James Announces Agreement to Repurchase Auction Rate Securities | url = http://www.raymondjames.com/pr/110629.htm | publisher = Raymond James Financial | date = 2011-06-29 | access-date = 2012-06-17}}{{Cite web | title = Raymond James auction-rate suit first to be upheld | url = http://www.investmentnews.com/article/20100909/FREE/100909897 | work = InvestmentNews | date = 2010-09-09 | access-date = 2012-06-17}}

= Notable FINRA Fines =

In September 2011, the Financial Industry Regulatory Authority ordered Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. to pay restitution of $1.69 million to 15,500 of their 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.{{Cite press release|title = FINRA Orders Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. to Pay $1.69 Million in Restitution for Charging Unfair Commissions|url = http://www.finra.org/Newsroom/NewsReleases/2011/P124536|publisher = Financial Industry Regulatory Authority|date = 2011-09-29|access-date = 2012-06-17}}

On May 18, 2016 Raymond James was fined a total of $17M for failing to establish and implement adequate AML procedures, which resulted in the firms’ failure to properly prevent or detect, investigate, and report suspicious activity for several years.{{cite web|url=http://www.finra.org/newsroom/2016/finra-fines-raymond-james-17-million-systemic-anti-money-laundering-compliance|title=FINRA Fines Raymond James $17 Million for Systemic Anti-Money Laundering Compliance Failures

|publisher=FINRA|date=18 May 2016|accessdate=2024-11-05}} RJA's former AML Compliance Officer, Linda L. Busby, was also fined $25,000 and suspended for three months. On December 21, 2017 Raymond James was fined $2 million for failing to reasonably supervise email communications. {{Cite web|url=http://www.finra.org/newsroom/2017/finra-fines-raymond-james-2-million-failing-supervise-email-communications|title=FINRA Fines Raymond James Financial Services, Inc. $2 Million for Failing to Reasonably Supervise Email Communications {{!}} FINRA.org|website=www.finra.org|access-date=2019-02-11}}