Payout Schedule Guide Independent Contractor

Transcription

1 Payout Schedule Guide Independent Contractor

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3 Your Guide to Payout Options At Raymond James, our superior service and generous compensation plans have resulted in an almost unheard of level of advisor loyalty. What s more, we recognize there can be different approaches to responsibly serving your clients investment and financial services needs as an independent contractor. We therefore provide two payout models within our Independent Contractor Division. Experience the power of independence at Raymond James. Payout Schedule A Professionals attracted to this payout model tend to look at their clients entire financial pictures, often using a financial planning approach. As demonstrated in the chart to the right, many of these advisors focus on funds, annuities, professional asset management and fee-based alternatives rather than individual securities. 22% Insurance/ Annuities 1% Syndicate 13% Stocks/Bonds/Options 24% Mutual Funds/ UITs 40% Asset Management/ Fee-Based Revenue Payout Schedule B This payout model has been developed for those advisors who operate their practices as traditional stock-and-bond brokers or equity-oriented portfolio managers. The advisors who choose this payout option tend to make their own recommendations for the individual securities to be held in their clients portfolios. Their business mixes typically skew toward equity and bond trades, as illustrated in the chart to the right. 2% Syndicate 11% Insurance/ Annuities 44% Stocks/Bonds/Options 26% Asset Management/ Fee-Based Revenue 17% Mutual Funds/ UITs 1

4 Your Guide to Payout Options Products Payout Schedule A Ticket Charges Schedule A Discover something different at Raymond James a flourishing organization that s dedicated to you. Mutual Funds/Trails $26 90% Annuities/Trails $35 Insurance 85% $49 Listed Equities (nonmanaged accounts) OTC Equities (nonmanaged accounts) Foreign Equities Options 85% $22 (plus $.015 per share) $26 $26 $21 (plus $1.30 per contract) Syndicate Underwriting (equity) 83% $35 Corporate Bonds $38 U.S. Treasuries $45 80% Preferred Stocks $30 Foreign Bonds Government Agency Bonds 80% Mortgage-Backed Bonds and CMOs Municipal Bonds Certificates of Deposit 80% Unit Investment Trusts Investment Banking Referral Fees $0 Alternative Investments (funds, futures, nontraded REITs) 80% 90% $26 $49 Alternative Investments/Trails (funds, futures, nontraded REITs) 90% $26 ADVISORY FEES* Ambassador Account 85% 90% $0 Passport Investment Account 100% $30 $50 Freedom Account 85% 90% $0 Planning and Consulting Fees 85% 100% $0 Separately Managed Accounts Outside Manager Program (OSM) 85% 90% $0 * Payout after management, administration and clearing fees Client charged unless otherwise directed by advisor. List of no-transaction-fee funds available from Raymond James Financial Services. 2

5 Payout Schedule B 85% Ticket Charges Schedule B $27 $38 80% $49 90% $20 (plus $.01 per share) $25 $26 $21 (plus $1.30 per contract) 88% $35 85% 82% 80% $38 $45 $30 $0 80% 90% $27 $50 Mutual Funds Ticket charges for mutual fund electronic transactions apply to each account allocation. There are no ticket charges for liquidations, exchanges within fund families or automatic dollar-cost-averaging purchases (periodic investment plans). Direct Mutual Funds Daily direct commission transmissions from National Securities Clearing Corporation (NSCC) eligible funds are grouped together on a weekly basis, resulting in a single processing fee for all trails for each financial advisor number. Annuity Trails Ticket charges on annuity trails are charged per trail. Trails less than $100 are grouped together and processed monthly. If the monthly total is less than $100, the trails are held until their combined total reaches $ % $27 85% 90% $0 100% $30 $50 85% 90% $0 85% 90% $0 80% 85% $0 3

6 Payout Bonus Plans Cash Equivalents An additional revenue source is an annual 15-basis-point gross production credit (quarterly) to branch managers or financial advisors on certain cash equivalent assets. The credit is given on internal cash balances and margin account debits and lines of credit. Payout Schedule A A total of 15 basis points is credited to each financial advisor s gross production when the total combined average balance in these programs exceeds $500,000 in any quarter. Fee-based (including Passport) assets are excluded. If total assets are less than $500,000, but greater than $100,000 in Capital Access, the basis-point credit is paid on Capital Access accounts only. There is no payout on fees or trails from cash balances other than those named above. The payout is 85%, with no ticket charges (12.75 basis point net). Payout Schedule B Branches receive a gross credit of 15 basis points when branch balances exceed $1,500,000. Fee-based (including Passport) assets are excluded. There is no payout on fees or trails from cash balances other than those named above. The credit is paid out quarterly based on the following schedule: 85% on balances of $1,500,000 to $4,999,999 95% on balances of $5,000,000 to $9,999, % on balances of $10,000,000 or greater Bonus Program Wealth Accumulation Program The Wealth Accumulation Program (WAP) is a deferred compensation reward program that provides an incremental bonus beginning at 1% when an advisor s production exceeds $450,000. The bonus increases to 2% at $750,000, 3% at $1 million and continues to rise as production increases up to 10% for more than $3.5 million. Bonuses are calculated at the end of the fiscal year and the amounts awarded are placed in special accounts, in which advisors choose from an array of funds to invest their WAP bonuses. After a five-year cliff vesting period, each program participant receives a check for his or her initial bonus amount, plus any investment growth. 4

7 Business Plan Estimation Your Worksheet Guidelines Estimate Initial Expenditures Office Deposit Two months rent Office Improvements Varies Furniture $5,000 $10,000 Computer $1,500 $2,500 (per person) Printer $500 $1,500 Scanner (document management system) $700 Copier $1,500 $2,500 Fax $250 $500 Telephone $750 $1,200 Legal/Accounting Fees $250 $750 Office Supplies $200 $400 Stationery/Business Cards $400 $800 Advertising $500 $1,500 This worksheet provides a reasonable plan for a one- or two-person office. Other configurations (e.g., executive suites and multiadvisor offices) can result in higher or lower costs than suggested at left. Your business development consultant can assist in refining these projections for your business plan. TOTAL Monthly Operating Expenses Estimation Guidelines Your Estimate Employee Salary/Benefits $3,000 $4,000 (per person) Office Rent $1,000 $3,000 Telephone/Internet $400 $600 Accounting Fees $50 $150 Health Insurance $300 $500 (per person) Property/Casualty Insurance $50 $75 Utilities $100 $200 Advertising $100 $600 Postage $100 $200 Supplies $50 $100 Subscriptions $25 $50 Registration Fees $10 $50 Albridge (optional) Premium $300 Real-Time Market Data Service optional $125 RJFS Technology Fee* includes Albridge and 20-minute delayed quotes free of charge RJFS Financial Advisor Fee $295 $145 (per producing advisor) TOTAL * Includes CRM, Sungard Financial Planning Workstation Includes E&O insurance, Fidelity Bond, emarketing Matters, AudioFile, Raymond James Tech News and Compliance & Education Quarterly for each producing advisor 5

8 International Headquarters: The Raymond James Financial Center 880 Carillon Parkway I St. Petersburg, FL Toll-Free: I advisorchoice.com/ic For Broker/Dealer Use Only 2011 Raymond James Financial Services, Inc., member FINRA/SIPC 10-ICDR-0392 JM/RW 1/11 M /10/2012