Raymond James Financial
| Company type | Public |
|---|---|
| Industry | Financial services |
| Predecessor | Robert A. James Investments; Raymond & Associates |
| Founded | 1962 |
| Founder | Robert James; Edward Raymond |
| Headquarters | St. Petersburg , United States |
Area served | United States, Canada, international |
Key people | Tom James (Chairman Emeritus), Paul Reilly (former CEO) |
| Products | Investment advisory, financial planning, investment banking, asset management, banking |
Number of employees | 8700 (2022) |
| Website | raymondjames |
Raymond James Financial, Inc. is a globally operating American independent investment bank and financial services provider that caters to individuals, corporations, and municipal entities through its subsidiaries specializing in investment advisory, financial planning, investment banking, and asset management. Its corporate headquarters are located in St. Petersburg, Florida.
History
The company originated in 1962 when St. Petersburg-based broker Robert James established Robert A. James Investments. In 1964, this firm combined with Raymond & Associates—founded a year earlier by Edward Raymond—to create Raymond James & Associates. Robert James' son, Tom James, joined the organization in 1966 and assumed leadership in 1970. Although initial plans to become publicly traded began in 1969, the company did not go public until 1983. Tom James relinquished his CEO position to Paul Reilly in 2010 and stepped down as chairman in 2016, retaining the title of Chairman Emeritus.
In 2012, Raymond James expanded by acquiring Canadian operations from Allied Irish Bank. That same year marked a significant merger with Morgan Keegan & Company, establishing one of the largest comprehensive wealth management and investment banking firms outside of New York City.
By September 30, 2022, the firm had maintained profitability for 139 consecutive quarters and had been listed among the Fortune 500 companies since June 2016.
In September 2016, Raymond James took over Deutsche Bank Wealth Management’s U.S. private client services division, Alex Brown & Sons. In April 2017, it acquired Reams Asset Management from UMB Financial Corporation for $172.5 million, which included ownership of Scouts Investments.
As of September 30, 2022, Raymond James employed roughly 8,700 financial advisors across the United States, Canada, and international locations, overseeing approximately $1.09 trillion in assets under management.
Current operations
The firm’s business is divided into four primary segments: private client group; capital markets—covering equity, fixed income, and public finance; asset management—which includes general asset management services alongside Carillon Tower Advisers; and banking.
SEC v. Dennis Herula
In 2004, Raymond James Financial Services was penalized $6.9 million by the SEC due to insufficient oversight of former broker Dennis Herula. Herula orchestrated a Ponzi scheme that raised an estimated $44.5 million from investors between 1999 and 2000. He personally secured about $16.5 million of these funds, much of which was funneled into his wife’s brokerage account at Raymond James. After being apprehended in Bermuda, Herula pled guilty to wire fraud charges and received a prison sentence of 188 months.
Supervision of branch managers
In 2005, the National Association of Securities Dealers imposed a $2.75 million fine on Raymond James for inadequate supervision of producing branch managers. The inquiry centered on a Wisconsin branch manager responsible for approximately 700 client accounts who sold unsuitable high-risk mutual funds and variable annuities over a span of four years.
Auction rate securities
On June 29, 2011, Raymond James consented to repurchase auction rate securities (ARS) that had been sold via its broker/dealer subsidiaries prior to February 13, 2008. This arrangement with the SEC and various state regulators resolved a three-year investigation into ARS market conduct. The firm neither admitted nor denied wrongdoing but paid $1.75 million in penalties to state authorities; no fines were levied by the SEC itself. Prior to the collapse of the ARS market in 2008, Raymond James had sold $2.3 billion worth of ARS, underwritten $1.2 billion, and served as auction dealer for over $725 million in securities. Following the market failure, at least nineteen underwriters and broker-dealers faced class action lawsuits related to these securities.
Significant FINRA Penalties
In September 2011, the Financial Industry Regulatory Authority mandated that Raymond James & Associates, Inc. along with Raymond James Financial Services, Inc. reimburse $1.69 million to 15,500 clients due to excessive commission charges on more than 27,000 securities transactions conducted between 2006 and 2010. Additionally, FINRA imposed fines of $225,000 on RJA and $200,000 on RJFS.
On May 18, 2016, Raymond James received a $17 million penalty for inadequate implementation of anti-money laundering (AML) controls, which impaired the firm's ability to identify and report suspicious activities over multiple years. The former AML Compliance Officer, Linda L. Busby, faced a $25,000 fine along with a three-month suspension. Later, on December 21, 2017, the company was fined $2 million due to insufficient oversight of email communications.
See also
- Raymond James Stadium, a versatile stadium located in Tampa, Florida, named under a licensing agreement with the firm.