WealthManagement Magazine

RJFS CEO Predicts Significant Jumps in Reps, Fee-Based Planning

Raymond James Financial Services, which grew to a record 3,909 brokers in 2000, projects to increase at an average rate of 500 brokers per year over the next three years, according to Tony Greene, chairman and CEO of RJFS. “We’re being very aggressive in taking this firm to the next level,” Greene said at RJFS’s 2001 National Conference in Las Vegas on Monday. By 2004, Greene projects the firm to

Raymond James Financial Services, which grew to a record 3,909 brokers in 2000, projects to increase at an average rate of 500 brokers per year over the next three years, according to Tony Greene, chairman and CEO of RJFS.

“We’re being very aggressive in taking this firm to the next level,” Greene said at RJFS’s 2001 National Conference in Las Vegas on Monday.

By 2004, Greene projects the firm to have 5,395 reps with an average gross of $274,000 and 2,138 offices nationwide. By 2009, Greene said RJFS expects to have 8,300 reps with average gross of more than $400,000 and 3,600 offices.

Greene also said he wants all of the firm’s brokers to move their business “more quickly” to a fee-based practice, and that the firm expects to be near to a 50% ratio of fee- to commission-based revenue by 2004. The firm is currently at 60% commission-based revenue and 40% fees, according to RJFS. By 2009, Greene said the firm expects to be 68% fee-based, 32% commissions.

“When you’re primarily commission-oriented and you see revenues dip, you get uncomfortable,” he said. “That’s what drove me to the fee arena.

“Brokers operating a consulting practice, as opposed to transactional, have three times the assets, three times the revenue and three times the practice valuation. They earn more and get more referrals. If those aren’t enough reasons to have a consulting, fee-based practice, I don’t know what is,” Greene said.

Editor's note: For any comments regarding this article, or to suggest a story idea for RR Online or Registered Representative magazine, contact Editor in Chief Dan Jamieson at [email protected], Online Editor Rick Weinberg at [email protected], Online Managing Editor Cheryl Cooper at [email protected] or Senior Editor Michael Hayes at [email protected]

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