Raymond James Ltd. has much to celebrate after hitting its tenth anniversary in Canada. Not only has the Toronto-based brokerage been bolstering its management team with the addition of several new roles, but the firm also has plans to grow its assets under administration and its advisor base.

“We are well on track to having an even more significant presence in the Canadian marketplace than we do today,” says Terry Hetherington, Raymond James’s executive vice president and head of the private client group. “Already, we have aggressive plans in place that will continue to grow our business.”

Over the past decade, the firm has grown by acquiring advisors and advisory teams one by one without major acquisitions.

However, the Canadian firm’s creation was precipitated by Florida-based parent Raymond James Financial Inc.’s initial acquisition of Vancouver-based independent brokerage Goepel McDermid Inc. in 2001. The U.S.-based parent then launched the Raymond James brand in Canada, with 250 investment advisors in 22 branches across the country.

“Unlike many other U.S. firms,” says Hetherington, “our founder, Tom James, was wise enough to know that you can’t just transplant a U.S.-based model into Canada and expect results. He respected the fact that Canadian investors and their advisors are different and, to be successful, you have to run the business in a way that makes sense here in Canada.”

Raymond James’s strong relationship with its U.S. parent plays a significant role in the former’s success, says Hetherington. It has the ability to leverage off a strong U.S.-based company while continuing to manage the business specifically for Canadians.

“It is unique in that [people at the parent firm will] ask us how they can help us and provide significant resources for important areas, such as practice management, technology, marketing and web development,” says Hetherington. “We are able to offer something that no one else can — a fully integrated North American platform.”

Today, Raymond James has grown to more than $17 billion in client AUA, up from $3 billion; furthermore, the firm now has 460 advisors across Canada. Raymond James plans to beef up those numbers to $30 billion in AUA and 600 advisors by 2014.

To grow the firm’s advisory base, Hetherington brought in Bob Larose as senior vice president of growth and development in July 2010. Larose, who previously had served as executive vice president of private client services with Vancouver-based Canaccord Financial Ltd., will have a significant role in overseeing Raymond James’s recruitment process.

“We are always out there talking to potential advisors,” says Hetherington, “as long as the culture and the businesses fit together and ultimately benefit the client.”

The firm’s business model is one that focuses on providing financial advisors with a choice. Raymond James offers two platforms on which advisors can run their businesses. The traditional, independent employee model is one in which the advisor is offered a competitive payout and works from a branch office. The independent agent model provides the advisor with a higher payout to set up an independent office; those advisors cover their own expenses (such as rent, office staff and technology).@page_break@Despite offering different platforms, Hetherington stresses the importance of running the firm as a whole and treating every advisor as an equal: “Regardless of which model the advisor is working under, our suite of products and services to the client are seamless. Every advisor can count on receiving the same high level of service for their clients.”

All advisors receive the same marketing support, compliance and back office, as well as a number of support services in tax planning, insurance planning, and wealth and estate planning.

The independent agent platform is the fastest-growing part of the private-client business in terms of numbers, says Peter Kahnert, Raymond James’s senior vice president of corporate communications and marketing.

“From our standpoint,” says Kahnert, “the independent model complements our corporate platform. [The former] enables us to build a presence in communities from larger centres to smaller communities without the need to invest significant dollars in bricks and mortar. It continues to reinforce our platform of choice, and sets us apart from many others.”

Over the past year and a half, the firm has been busy adding talent to its management team. After hearing from clients that discretionary portfolio management was a service they wanted from their advisors, Hetherington hired Jacob Leibel as vice president and head of the private investment management group to expand this area. Prior to joining Raymond James, Leibel had co-managed the discretionary portfolio program at Toronto-based RBC Dominion Securities Inc.

“We determined that this area is a real growth engine for our business,” says Hetherington. “And while we don’t want to go out and tell every advisor that he or she has to get licensed, we do want to provide the advisor who wants to take that route [with] the opportunity to build that relationship with their clients.”

So far, 30 Raymond James advisors have obtained their discretionary portfolio licences.

Also through discussion with advisors, Hetherington had identified opportunities in the retail fixed-income area. Mario Addeo was hired as senior vice president and head of fixed-income.

In addition to boosting the management team’s numbers, one of the firm’s largest growth initiatives is expanding its footprint into provinces in which it currently does not have a presence.

Today, Raymond James operates in every province except Prince Edward Island and Newfoundland and Labrador. Just this past January, the firm expanded into Quebec, opening its first corporate office in Montreal. Although there had been a few smaller, independent agents’ offices in Quebec, Hetherington says, it was important for Raymond James to expand its presence in the province.

“This is an exciting new addition for us,” says Hetherington. “Considering that the province of Quebec represents approximately 20% of the total wealth in Canada, this is [a region in which] we have wanted to increase our representation. We are attracting a lot of interest in the early going, and expect this branch to be a significant footprint, setting the stage for our growth in Quebec.” IE