Raymond James Financial Services has introduced a new compensation model for independent registered investment advisors.

The new compensation model for “RIA hybrids” takes effect on April 1 and is aimed at financial advisors with at least $100 million in discretionary client assets under management. Unlike traditional payout plans, advisors operating under the new model will retain 100 percent of their advisory fee, but pay a quarterly fee to Raymond James based on each practice’s discretionary assets under management.

Qualifying advisors will have a choice of establishing and operating their own independent RIA practice or, for an extra fee, providing advisory services as an investment advisory representative of the firm’s corporate RIA. 

“We are confident top advisors with a discretionary approach to managing their clients’ portfolios will appreciate the simplicity and transparency of this pricing structure,” RJFS president Scott Curtis said in a statement. “This will appeal to successful employee and independent advisors who are exploring the RIA hybrid business model and looking for the support and resources of a leading, full-service firm.”

RJFS’s new compensation model is aimed at experienced advisors who provide “discretionary portfolio management services” to clients, operating as independent business owners while leveraging Raymond James’s advisor support resources

Under the new RIA hybrid model,  mutual fund 12b-1 trail commissions paid to Raymond James on fund shares in clients’ managed portfolios will be reimbursed to the advisors’ clients instead of being retained by the firm, effectively reducing each client’s portfolio management costs. Advisors who qualify for and select the hybrid model will remain eligible for RJFS recognition council memberships and will continue to have full access to RJFS resources, including advisor and client-facing technology tools, practice management educational programs, alternative investment products, trust services, lending, insurance and  investment banking, as well as compliance support and legal services.

For more information, visit www.raymondjames.com.