Why Advisors Are Leaving Raymond James for Supported Independent Platforms

Raymond James has long been a reputable player in the wealth management industry, known for its strong culture and client-centric approach. However, in recent years, a growing number of advisors have chosen to leave Raymond James in favor of supported independent platforms. This trend reflects a broader shift within the industry, as advisors seek more autonomy, flexibility, and growth opportunities. In this article, we will explore why so many advisors are making the move from Raymond James to independent platforms and what these platforms offer that is enticing such talent.

Key Reasons Advisors Are Leaving Raymond James

1. Higher Costs and Reduced Compensation

Advisors at Raymond James are facing increasing operational costs, which are eating into their bottom line. As the firm continues to modernize and upgrade its technology infrastructure, these expenses are being passed down to advisors in the form of higher administrative, legal, and compliance fees. This uptick in costs has been compounded by reduced payout structures in some areas, leading many advisors to feel that they can achieve higher compensation elsewhere.

Independent platforms often offer better compensation structures, allowing advisors to retain a greater share of their revenue without the weight of corporate overhead.

2. Overburdened Compliance and Limited Flexibility

Compliance has become a significant pain point for advisors at Raymond James. The firm’s stringent compliance requirements, particularly around marketing and branding, have left many advisors feeling stifled. Whether it’s organizing client seminars, managing personal branding on LinkedIn, or maintaining a personal website, advisors are finding that the firm’s compliance team often hampers their ability to grow their business.

Advisors looking to operate with more freedom, especially in terms of how they present themselves to potential clients, are increasingly turning to independent platforms. These platforms often provide compliance support but without the same heavy-handed approach seen at larger firms like Raymond James.

3. Leadership Changes and Uncertainty

Raymond James is currently undergoing a period of significant leadership transition. CEO Paul Reilly is set to retire, and Paul Shoukry has been named as his successor. In addition to this, the firm has made several other high-level executive changes, including new leadership for their private client group and regional branches. While such transitions are a normal part of business, they have left some advisors feeling uncertain about the future direction of the firm.

This leadership turnover, combined with internal restructuring, has created an atmosphere of change at Raymond James. For advisors who value stability and continuity in their leadership, this uncertainty has been a factor in their decision to explore other options.

4. Limited Growth Opportunities

Raymond James advisors are finding that the firm’s structure limits their ability to grow their business in ways that are most meaningful to them. Whether it’s acquiring other practices, accessing private equity, or expanding through mergers and acquisitions (M&A), the firm’s bureaucracy and rules can stifle advisors’ growth ambitions.

In contrast, supported independent platforms offer advisors the ability to control their own destiny. These platforms provide access to capital for M&A activity, acquisition funding, and help advisors build equity in their business—things that can be more challenging within the structure of a large firm like Raymond James.

Case Study: Major Departures from Raymond James

Over the past two years, several major advisor groups have left Raymond James, citing these very concerns. Some of the most notable departures include:

Concurrent Advisors:
Assets Under Management (AUM): Approximately $13 billion
Advisor Count: Around 145 advisors

Details: While Raymond James retained about 60% of the assets and advisors, they lost approximately $5.2 billion in AUM and 85 advisors. The main reason for the departure was Concurrent Advisors’ desire to operate under a multi-custodial platform, free from Raymond James’ restrictions.

Steward Partners Global Advisory
AUM: Nearly $27 billion

Details: Although Steward Partners continued to custody some assets with Raymond James after ending its broker-dealer relationship, the firm transitioned much of its business to a more independent structure. The move was driven by Steward Partners’ desire to grow without the limitations imposed by Raymond James.

Phil Eggers (Legacy Retirement Planning)
AUM: $170 million

Details: Eggers left Raymond James for LPL Financial, attracted by the opportunity to operate in a more flexible and independent environment, which LPL could offer compared to Raymond James.

What Supported Independent Platforms Offer

So, what is it about supported independent platforms that makes them so appealing to Raymond James advisors? Here are some of the key benefits that are drawing advisors away from Raymond James:

1. Freedom and Control

Supported independent platforms allow advisors to run their practice their way. Without the corporate bureaucracy and heavy compliance burdens of large firms like Raymond James, advisors on independent platforms can make their own decisions about how they market themselves, the technology they use, and the clients they take on. This autonomy is particularly appealing to advisors who have felt restricted by Raymond James’ stringent compliance and branding rules.

2. Full Back-Office Support

Independent doesn’t mean unsupported. Many supported independent platforms offer comprehensive back-office support, including administration, technology, compliance, human resources, legal, marketing, and more. Advisors can enjoy the freedom of independence without sacrificing the infrastructure and support they need to run their business smoothly.

Additionally, these platforms often provide access to a wide array of investment options through custodians like Schwab, Fidelity, Goldman Sachs, and Pershing, giving advisors more flexibility in managing client portfolios.

3. Greater Equity and Growth Opportunities

One of the most significant advantages of supported independent platforms is the ability to grow equity in the business. Advisors on these platforms often have access to transition capital, acquisition funding, and M&A opportunities that can significantly increase the value of their practice. Unlike larger firms, where equity is often tied up within the corporate structure, independent advisors can build and retain their own equity, making their practice more valuable in the long run.

4. Higher Valuations for Independent Practices

The valuations of independent advisory practices have exploded in recent years, driven by increased interest from private equity firms and other investors. Advisors who leave Raymond James for independent platforms are finding that their business is worth significantly more once they transition to an independent model, particularly if they take advantage of acquisition capital and M&A opportunities.

The Future of Advisor Transitions

The trend of advisors leaving Raymond James for supported independent platforms is not slowing down. As more advisors prioritize freedom, flexibility, and equity growth, supported independent platforms are becoming an increasingly attractive option. At the same time, Raymond James is actively working to retain advisors by enhancing support and compensation, but the allure of independence is hard to ignore.

Conclusion

Raymond James has long been a leader in the wealth management industry, but for advisors who are seeking more autonomy, growth potential, and higher valuations for their business, supported independent platforms are an increasingly popular alternative. With the ability to run their practice their way, supported by comprehensive infrastructure and back-office support, advisors are able to unlock new levels of success and satisfaction.

As the competitive landscape in the wealth management industry continues to evolve, it’s clear that supported independent platforms will play a significant role in shaping the future of the industry.