A Note from Raymond James

I read with interest the article by Philip Palaveev in June's Financial Planning entitled "Be Careful What You Wish For," but I must take issue with two of his statements. In describing the various types of broker-dealers Palaveev categorizes Raymond James as a "branded firm," as opposed to a "large and efficient firm," "unique business model firm," "specialized firm" or "distribution firm." And while he notes that we are "great," he states we offer lower payouts than other firms.

I strongly disagree. Raymond James Financial Services offers payouts competitive with other quality independent firms, as evidenced by the charts in the magazine. And with the introduction in 2007 of our Wealth Accumulation program, this year many advisors will earn more—some as much as 10% more—than shown in the charts, arguably making RJFS' payouts the industry's best.

I also suggest that Raymond James would more appropriately be considered a "large and efficient firm" in Mr. Palaveev's categorizations. And contrary to the implication in the article, our branding in no way reduces payouts, but instead benefits our financial advisors. In fact, you will find that our most successful advisors attribute a portion of their growing success to their affiliation with a better-known firm.

I agree wholeheartedly with the Mr. Palaveev's premise that advisors should look beyond payout—and certainly beyond the transient bump of up-front money—when considering a change of firms. It is the combination of RJFS' offer of the best technology, the greatest home office support, the strength and diversity of resources of a Wall St. member firm, the choice of affiliation and our industry-leading payouts that allows us to go head to head with other firms. Judging by our recruiting, I consider us successful in doing so.

Dick Averitt III Chairman, CEO Raymond James Financial Services St. Petersburg, Fla.