2 Ray James Questions

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Mar 9, 2007 5:13 pm

Ok, I'm looking hard at Ray James.


The office in our town is a former Ed Jones with Ray James 2 years who does strictly stock, bonds and mf's.  He has little clue about much else.  I would be joining his office as he has an open space I can rent.


Question#1 - Can he get any type of referral fee for bringing me in?  Would us involving a recruiter affect that?


Question #2 - Most indpendent advisors are free to contract with any fixed annuity insurance company they chose.  Is this the case with Raymond James?

Mar 10, 2007 2:05 pm

You can only use annuity providers approved by the RayJay PCA department.  Your comission on annuities is very low so as not to reward financial advisors for putting clients into annuities when other financial solutions exist.  Annuity salesmen would be miserable at RJ because the compliance department looks at each case with a fine tooth comb.

Mar 10, 2007 4:32 pm

vb, you are correct on VAs, but I don't think RJ requires the same on fixed annuities, but then again, it's been awhile since I've looked at them, so I can't say with certainty that I'm right.  I know that LPL is clamping down in EIAs (none off their approved list), and I would assume that RJ has done something similar.  Pure fixed annuities are still hands off at LPL, and I assume the same at RJ.  Perhaps someone in RJ's indy channel will set the record straight...

Mar 11, 2007 11:03 am
Indyone:

vb, you are correct on VAs, but I don't think RJ requires the same on fixed annuities, but then again, it's been awhile since I've looked at them, so I can't say with certainty that I'm right.  I know that LPL is clamping down in EIAs (none off their approved list), and I would assume that RJ has done something similar.  Pure fixed annuities are still hands off at LPL, and I assume the same at RJ.  Perhaps someone in RJ's indy channel will set the record straight...



VB, and Indy


Thanks, and yes I hope someone in the RJ INDY channel can set this straight.  I do have a call into an advisor I hope will be returned soon on the matter.  For VA I plan on using a fee based compensation model, (if and when I sale any).  I'm curious on the fixed side.


Side note:  I'm not too thrilled about them trying to control which types of products are sold by independents.  Seems like they are overstepping their duties.

Mar 12, 2007 5:26 pm

Question#1 - Can he get any type of referral fee for bringing me in?  Would us involving a recruiter affect that?


Yes, depending on production, I think 200 gross minimum for finders fee. Do recruiters recruit for indy's?


Question #2 - Most indpendent advisors are free to contract with any fixed annuity insurance company they chose.  Is this the case with Raymond James?


NO, it is limited by PCA. Pretty much not the ones that have the high commisions. 


BTW ..A large cloud formation is building in our legal system on EIA's. Becareful.

Mar 12, 2007 7:12 pm
Bamzor:

Question#1 - Can he get any type of referral fee for bringing me in?  Would us involving a recruiter affect that?


Yes, depending on production, I think 200 gross minimum for finders fee. Do recruiters recruit for indy's?


Question #2 - Most indpendent advisors are free to contract with any fixed annuity insurance company they chose.  Is this the case with Raymond James?


NO, it is limited by PCA. Pretty much not the ones that have the high commisions. 


BTW ..A large cloud formation is building in our legal system on EIA's. Becareful.



Care to elaborate on that "large cloud" a little bit for us?  Got links?

Mar 12, 2007 8:48 pm
joedabrkr:



Care to elaborate on that "large cloud" a little bit for us?  Got links?





Mostly having to do with suitability, and various "senior advisors" selling them to every old thing that moves.



 




Mar 12, 2007 11:08 pm

So as I was looking through the RAY James fixed annuity list, there was only a couple of true traditional type fixed annuities.  Both paying crap around 4% intereste rate to the client.  So you are saying I cannot go find a better FIXED annuity and fill out an outside business disclosure to RJ?  This seems odd since most other independents have said it never goes to the grid for them and they can use who they like.

Mar 13, 2007 12:04 am

Looks like I stand corrected...sounds like RJ really isn't much of an indy firm anymore...glad I went a different direction...

Mar 13, 2007 8:58 am

You can use any outside fixed annuity vendor you want at RJ.  With the exception of indexed annuities which must be purchased through Raymond James. I use outside vendors all the time for life insurance and immediate annuities... and fixed annuities.


The only way the existing RJ guy will be compensated if you come to his office is if you open your own branch and have production of $250,000.


RJ's move to change the VA's to their own basically proprietary product was poorly thought out and executed however there's still plenty of choice to allow you to serve your client well... unlike Edward Jones.


PM me if you have any specific questions.

Mar 13, 2007 9:51 am

Thanks uw, that answers my questions perfectly.