RJ boss on MK deal: Right fit, right time

RJ boss on MK deal: Right fit, right time
Reilly says he preferred internal growth but was swayed by similarity in culture between two firms
MAY 10, 2012
Raymond James' $1.2 billion acquisition of Morgan Keegan & Co. Inc., which closed in April, was not one that the company's boss executive initially favored. “We prefer internal growth, not acquisition," said Paul Reilly, chief executive of Raymond James Financial Services Inc. "But this was an opportunity to add a firm that was very close to Raymond James in culture." Mr. Reilly, speaking at a press session Wednesday at the firm's national conference in Orlando, Fla., addressed why the Morgan Keegan deal garnered so much attention in the press and the securities industry itself. "A billion-dollar acquisition is not usually a big acquisition," he granted. "But no one else is doing any right now." Mr. Reilly said that deal bolsters Raymond James' municipal-finance department, which will make available a much wider array of tax-free municipal bonds to the firm's high-net-worth clients across all distribution channels. Some elements of Morgan Keegan's technology, particularly its client reporting tools, will be added to the overall Raymond James offering, he said. Mr. Reilly said his company used to benchmark itself against other regional firms in terms of adviser technology but now compares itself to such technology leaders as Fidelity Investments and The Charles Schwab Corp. He also noted that the addition of some 1,000 Morgan Keegan reps will allow the firm to amortize its growing technology spending over a wider adviser base, allowing all Raymond James advises, whatever their channel, to benefit from increased technology spending.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.