What Treating Customers Fairly Means to RJIS

RJIS fully endorses the principles of Treating Customers Fairly (TCF) and believe that they coincide with the Raymond James Financial Vision to be a premier financial services firm providing the highest level of value to clients.

RJIS considers fair treatment of customers to be fundamental to our business. It is our overriding objective to ensure investors are fairly treated and to do so we strive to create the right corporate culture both within Head Office and our entire branch network that allows for fair consumer outcomes to be consistently delivered.

RJIS keeps in mind that we have differing responsibilities to three sets of clients:

  • Investors
  • Independent Contracting and Professional Partner advisers and
  • Firms using our Wrap Platform

In essence, as a means of RJIS accomplishing our responsibilities to the investor clients, we must also treat our advisers and wrap firms fairly who in turn directly provide services to these investors.

RJIS places great value on independent thinking, objective advice and individual solutions and personal choice is held as a fundamental building block of business success. RJIS has a clearly defined target market, and RJIS advisers in turn have identified their target investor clients. We ensure that the products and services offered are designed to meet their needs accordingly. Clients receive, either from RJIS directly or through advisers, clear and frequent communications. We do not centrally manufacture products, so advisers are free to work with investors to identify individual needs, provide quality advice and develop appropriate solutions to fit each client’s personal goals. RJIS ensures we provide the highest level of service with integrity to advisers as they do to their clients. Advisers can be confident that RJIS does not create any unreasonable post sale barriers for them or their clients to change products, change firms or make any complaints.

RJIS’ Approach to TCF

RJIS has always sought to balance the commercial independence of our independently owned branches with the regulatory reality of RJIS being viewed as one firm by the FSA. RJIS provides investment management and advice services to investor clients of branches. We believe that TCF does not only relate to this investment management and advice, but also to the administration services provided to all investor clients of both branches and firms using our wrap platform. RJIS must therefore be satisfied that TCF is being addressed at multiple levels within the firm. We continue to measure and test that our performance meets our advertised standard. We also work closely with advisers to gain their valuable feedback.

RJIS has formed a TCF Executive Committee comprised of members of our senior management team who analyse our approach to TCF and address any gaps. The six members of the committee are responsible for ensuring they are incorporating the principles of TCF within their business units in their normal day to day roles, but they also play an active role in the TCF Executive Committee which collectively analyses quarterly Management Information findings and gives direction as to how TCF will continue to be embedded into the business.

RJIS believes we have a unique proposition and many aspects lend themselves to delivering fair treatment to the investor clients and advisers. For example:

  • RJIS presents an unbundled pricing structure, with costs reflected for the different services we provide. A Schedule of Fees and Commissions (SOFAC) is provided to each investor as part of the account opening documentation. Therefore, investors can understand the services they are paying for and the relevant costs. In addition, RJIS discloses to advisers the full trail terms we receive from fund companies. Trail can be rebated to the investor’s account or paid to the adviser, all properly disclosed in the SOFAC so the investor understands the total cost of the service.
  • RJIS allows in specie transfers on and off the platform and has done since inception. RJIS does not charge to transfer assets onto the platform. RJIS charges a reasonable administration fee to transfer assets off the platform, which is disclosed on the SOFAC and is below our costs for such efforts.
  • We do not allow intermediary firms using our platform to own shares of RJIS, thereby alleviating this potential conflict of interest.

The dual requirements of ensuring the TCF outcomes can be evidenced for investors as well as advisers are equally important for RJIS. We feel this approach harbours a culture of fair treatment throughout our organisation.

Through the leadership of the TCF Executive Committee, RJIS has undertaken a comprehensive process to ensure we consistently deliver the six consumer outcomes set out by the FSA and that we can evidence our clients are treated fairly. The TCF Executive Committee will continue to be the driver of TCF within RJIS reporting to the CEO. When we see opportunities for further enhancements, we will implement them wherever possible.