Keating Financial Advisory Services, a former Raymond James affiliate with about 50 employees and 25 advisors, has broken away to be a registered investment advisor with offices in Kansas and Illinois.
Keating, which is based in Manhattan, Kan., had been with Raymond James for about 26 years and had a good relationship, according to President Ryan Mann. But the predominantly fee-only group that had grown to about $2 billion in assets under management felt it had the scale and makeup to go independent and started talking about the move with Raymond James back in 2023.
“I credit Raymond James with discussing with us what the best model would be for our firm,” Mann said. “As a firm, we are at a place where we felt we could take this on. … We made a target for July and then executed.”
Keating has kept Raymond James as a custodian and added Charles Schwab as an advisor option. Mann said that multi-custodial ability was one reason to go independent, as it gives the team’s advisors more options in what they offer clients.
Another factor, he said, was the ability to have more open architecture for its wealth technology stack.
“Raymond James had great technology,” he said. “As we looked around, we saw the ability to add technology that we need for our clients and our advisors—which is something a large broker/dealer just can’t do.”
Finally, Mann pointed to Keating’s desire to recruit advisors in various regions. The employee-owned firm has grown through recruiting and its internship program. Mann and the team expect to expand beyond their current footprints in Kansas and Illinois.
“We wanted the ability to go wherever we need to go to bring right-sized advisors for our firm,” Mann said.
Mann said Keating was also familiar with the RIA model, having run one for its 401(k) advice business since 2007.
Raymond James did not immediately respond to a request for comment about Keating’s move.
The St. Petersburg, Fla.-based broker/dealer has, of course, not been sitting still when it comes to keeping and recruiting advisors. CEO Paul Shoukry said that the firm has one of its strongest advisor pipelines since the financial crisis in its recent second-quarter earnings call.
On Tuesday, it reported another advisor addition in almost weekly announcements, with advisors Erik Heben and Todd Gartrell leaving Commonwealth Financial Network for Raymond James with about $210 million in client assets.
The broker/dealer has also been championing its RIA channel by which advisors use Raymond James’ platform and wealth management services, but remain independent. In March, the firm hired Ronice Barlow, a former Franklin Templeton senior vice president, as the chief operating officer for that independent contractor division.
But Keating Financial, which was founded by Pat Keating in 1975, saw its future as being better served as an independent RIA custodian with the broker/dealer.
According to industry trackers such as AdvizorPro, the RIA, fee-only or fee-dominant trend that has gained steam in recent years looks likely to continue. However, Mann cautioned that the transition is a lot of work, and he said it may be difficult for a smaller team, especially one with advisors in the latter stages of their careers.
“If you believe your future is bigger than your past, this is a business model to really consider and potentially take advantage of and make the transition,” Mann said. “If your past is bigger than your future, I’m not sure it makes sense.”
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