Raymond James still ‘very pleased’ with recruiting in face of COVID-19

CEO Reilly also cites potential for strong recruiting gains in future quarters given pent-up demand among some wirehouse advisers

Raymond James Financial Inc. reported a net increase of 84 advisers in the quarter ended in September, despite the difficulties presented by COVID-19 and the general slowdown in travel and business due to the pandemic.

The firm now hit a new high of 8,239 advisers across its varied platforms at the end of September, a net increase of 228 for the prior 12 months, or a bump of 2.8%.

Raymond James has been one of the leading recruiters of financial advisers for the past several years, drawing advisers from competitors with the promise of a more adviser-focused culture. The firm said earlier this year it would rely on technology and online meetings to conduct virtual recruiting during the pandemic.

During a conference call with analysts Thursday morning to discuss fiscal fourth-quarter earnings, CEO Paul Reilly said that he was “very pleased” with the firm’s recruiting across channels, including its traditional employee group, its independent contractor broker-dealer and its registered investment adviser.

Reilly added that the potential for recruiting growth was particularly strong in future quarters as there was pent-up demand from some advisers who are looking to leave wirehouse firms. Those advisers did not want to move quite yet because branch offices have been in large part closed and made a change in business venue tricky, he said.

Meanwhile, Raymond James reported record annual net revenue of $8 billion and adjusted annual net income of $818 million. The firm said in September it was laying off about 4% of its workforce, or more than 500 employees.