Raymond James is allowing its UK wealth manager affiliates to join as employees for the first time in its 20-year history.
Wealth managers who join as part of the new ’employee affiliation model’ have the freedom to build their own book of clients free of restrictive covenants and have autonomy over the investments and advice they give, all while picking up a salary and being set up in an office by Raymond James.
Raymond James claims the model, which has been in place for the firm’s US operations over the past 60 years, is a first for the UK wealth management sector.
The firm has offered an ‘independent branch’ business model since launching in the UK 20 years ago. This model positions firms as independent contractors with Raymond James looking after compliance as well as dealing systems, but the wealth manager is self-employed and sources its own office.
It offers two other types of affiliation: ‘professional partner’, which is often with accountants or law firms, and the ‘investment management platform’ which sees Raymond James provide wealth managers with custody and execution for their underlying clients.
Wednesday’s update marks the first time wealth managers will be able to join as full employees, while still being able to take clients with them should they choose to leave.
Raymond James said head of business development Anthony Scott (pictured right) told Portfolio Adviser the move was about lowering the barriers for people to be able to start up their own wealth management businesses.
“I have got the most enormous respect for all of those who have joined us,” he said. “It’s not without its risks when you make a change and you’re starting up your own business because obviously a number of the people we talk to have children, mortgages etc, so becoming a self-employed individual starting up your own business involves risk.
“In adding the option of joining us on a salary and providing an office just removes one of the obstacles that people may have.”
The first employee utilising the model is Simon Monk (pictured left), who opened a branch at Ropemaker Place in London last year.
Monk said: “Initially one of the main attractions of Raymond James was the prospect of building my business while retaining client ownership and control in the way those clients are serviced and the bespoke manner in which their investments are managed.
“This offering is not diminished in any way as an employee of Raymond James – in fact it is reassuring to know that I have the backing of one of the world’s largest wealth management organisations with over $1trn of assets under management.”
