The logic must have been compelling: Raymond James has both an independent contractor side and an employee advisor operation. Why not let incoming Morgan Keegan reps pick?
The roughly 1,000 Morgan advisors that Raymond James just bought will be brought in as employees of Raymond James & Associates, but will get the option to migrate to the independent channel if they like.
This is really smart as a retention tactic. If the reps were thinking about leaving, this gives them one less incentive to do so -- they can "break away" and Raymond James keeps the assets and the production they paid for.
It might cost a little more to smooth the transitions at the same time as the company absorbs the reps that decide to remain paid employees, but management seems willing to pay.
They're hoping to get at least 90% of the old Morgan Keegan to stay. Let's see if they do.