How We Protect Your Investments
At Raymond James, we pride ourselves on our commitment to placing clients' needs first and we have developed a number of safeguards to ensure the protection of client assets held at our firm.
Clients entrust Raymond James with their investments for a number of key reasons: We have strong corporate backing; we follow security safekeeping measures; we implement investment safeguards; we offer industry-wide investor protection; and we adhere to strict industry standards.
1. Strong Corporate Backing
Raymond James is one of North America’s leading independent full-service investment dealers serving over 3 million clients. Raymond James Ltd. is the Canadian subsidiary of Raymond James Financial, Inc. Established in 1962, our parent firm made its initial public offering in 1983 and is listed on the New York Stock Exchange with a market capitalization today of US$20.8 billion. Raymond James has approximately 8,462 Financial Advisors in more than 3,000 offices throughout the US, Canada and overseas, and has more than US$1.22 trillion in client assets under administration.* In 2012, Raymond James celebrated 50 years of client-first service - a milestone reached through our commitment to independence, conservatism and doing what's right.
*Stats as of March 31, 2023
2. Safekeeping of Security Certificates
Raymond James offers all of our clients the added protection of modern security holding practices. Nearly all of the securities we hold on behalf of our clients in North America are held at the same regulated depositories used by Canada's major banks and investment dealers: the Canadian Depository for Securities (CDS) and the Depository Trust Company (DTC) in the U.S. When physical certificates are deposited with us for safekeeping, we use the vault of a chartered bank to hold them in safe custody for you. This is standard practice for investment firms. This system minimizes the possibility of certificates being destroyed, lost or stolen, so it is the safest way for your securities to be held.
3. Implementation of Investment Safeguard Measures
We safeguard our clients' fully paid and excess margin securities by segregating them from securities related to our corporate investing activities. This is standard practice for investment firms and a regulatory requirement set out by the Investment Industry Regulatory Organization of Canada (IIROC), our primary regulator. This safeguard measure helps to ensure clients' investments are not subject to any risks related to an investment dealer's business activities.
4. Technological Security
Our technological systems are monitored 24 hours a day, 365 days a year, for signs of tampering or unauthorized activity. We employ the use of encryption, virtual private networks, penetration/vulnerability testing, and the latest firewall and antivirus technology. Email monitoring is also utilized for regulatory and compliance purposes in order to protect our clients. We also maintain strict controls to limit and monitor employee access to our systems. Our information technology professionals constantly research and develop enhancements to keep us at the vanguard of data security. A team of independent auditors reviews our technological systems quarterly.
5. Industry-Wide Investor Protection
At Raymond James, you receive the protection provided by our firm's membership in the Canadian Investor Protection Fund. The Canadian Investor Protection Fund provides coverage of the cash and securities we hold on your behalf, for a maximum loss of $1 million for combined types of accounts. This level of protection is standard within the industry. For coverage calculation purposes under this plan, certain types of accounts are combined. For example, taxable investment accounts would be combined and covered to a maximum of $1 million; a Registered Retirement Savings Plan held by the same individual would be covered as a separate account to a maximum of $1 million. It is important to note that coverage is provided against losses arising only from Member Firm insolvency issues; it does not cover market-driven investment losses. For further details on Canadian Investor Protection Fund coverage, ask your financial advisor for a copy of the CIPF brochure or visit its website at www.cipf.ca
6. Strict Adherence to Industry Standards
Raymond James operates within the strictly regulated Canadian securities industry. Standards set by the Canadian Securities Administrators and Canadian Investor Protection Fund are monitored and enforced by IIROC. In addition to the requirement to segregate client securities, IIROC requires us to maintain adequate risk-adjusted capital to cover our business-specific risks, keep comprehensive and accurate records, employ appropriate procedures for handling securities, and carry sufficient fidelity bond insurance. IIROC monitors our compliance with these requirements through independent audits conducted regularly by external auditors and by IIROC examiners.
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