Despite the fact that regional firms are projected to lose 1.4 percent of their market share of advisor headcount by 2014, Raymond James & Associates continues to onboard advisors nicely, luring three reps with a combined $281 million in assets under management and annual production of about $2.2 billion.
The team, lead by Gary McGovern, will launch a new Raymond James branch in Hingham, Mass., the firm announced Tuesday. All three advisors were originally with A.G. Edwards, and McGovern, as well as colleague John Flaherty, joined Wells Fargo when the firm was acquired. Frank McDonnell, also from A.G. Edwards, joined RBC Wealth Management in Norwell, Mass., in 2006. On the move, McGovern said:
Raymond James has a unique client-first philosophy that’s extremely hard to find in this industry. Plus, it’s one of the largest non-bank-owned financial services firms in the country, which means it’s big enough to provide us with terrific resources and support, but not so big that it sacrifices customer service or family feel.
In the first quarter, Raymond James’ growth in advisor count had been somewhat disappointing. While the wirehouses have struggled with mergers and other reputational issues, these other firms had the opportunity to swoop in and grab advisors and market share, but it doesn’t seem like Raymond James has been able to take advantage of that opportunity, Aite Group analyst Alois Pirker said back in April.
But perhaps the firm is turning things around. For advisors looking to break away from the wirehouses, large regional firms, such as Raymond James, have been well-positioned to pick up some of these advisors looking for a similar business model. Pirker said there will be a better opportunity for firms like Raymond James to recruit next year, as many of the wirehouse recruiting packages lose effectiveness then. I think it'll be a fight to the death next year between the wirehouses, regionals, IBDs and RIAs to see who can come out of it with the highest quality advisors.