RJF Raymond James Financial, Inc.

Risks

• RISKS RELATED TO OUR BUSINESS AND INDUSTRY
• Damage to our reputation could damage our businesses.
• We are affected by domestic and international macroeconomic conditions that impact the global financial markets.
• Lack of liquidity or access to capital could impair our business and financial condition.
• We are exposed to credit risk.
• We are exposed to market risk, including interest rate risk.
• A significant decline in our domestic client cash balances could negatively impact our net revenues and/or our ability to fund RJ Bank’s growth.
• Our business depends on fees generated from the distribution of financial products, fees earned from the management of client accounts, and asset management fees.
• Our underwriting, market-making, trading, and other business activities place our capital at risk.
• Any cyber-attack or other security breach of our technology systems, or those of our clients or other third-party vendors we rely on, could subject us to significant liability and harm our reputation.
• A continued interruption to our telecommunications or data processing systems, or the failure to effectively update the technology we utilize, could be materially adverse to our business.
• The soundness of other financial institutions and intermediaries affects us.
• Our risk management and conflicts of interest policies and procedures may leave us exposed to unidentified or unanticipated risk.
• We continue to experience pricing pressures in areas of our business which may impair our future revenue and profitability.
• We face intense competition.
• Our ability to attract and retain senior professionals, qualified financial advisors and other associates is critical to the continued success of our business.
• A downgrade in our credit ratings could have a material adverse effect on our operations, earnings and financial condition.
• Business growth could increase costs and regulatory and integration risks.
• Associate misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subject us to significant legal liability and reputational harm.
• We are exposed to litigation risks, which could materially and adversely impact our business operations and prospects.
• The preparation of the consolidated financial statements requires the use of estimates that may vary from actual results and new accounting standards could adversely affect future reported results.
• Our operations could be adversely affected by serious weather conditions.
• We are exposed to risks from international markets.
• We are exposed to risks related to our insurance programs.
• RISKS RELATED TO OUR REGULATORY ENVIRONMENT
• Financial services firms are highly regulated and the increased regulatory scrutiny over the last several years may increase the risk of financial liability and reputational harm resulting from adverse regulatory actions.
• Changes in requirements relating to the standard of conduct for broker-dealers applicable under federal and state law may adversely affect our businesses.
• Numerous regulatory changes and enhanced regulatory and enforcement activity relating to our investment management activities may increase our compliance and legal costs and otherwise adversely affect our business.
• Failure to comply with regulatory capital requirements primarily applicable to RJF, RJ Bank or our broker-dealer subsidiaries would significantly harm our business.
• The Basel III regulatory capital standards impose additional capital and other requirements on us that could decrease our profitability.
• As a financial holding company, RJF’s liquidity depends on payments from its subsidiaries, which may be subject to regulatory restrictions.
• RJ Bank is subject to the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to penalties.