Raymond James Financial(RJF) - 2025 Q4 - Annual Report

Capital Requirements and Regulatory Compliance - RJF, Raymond James Bank, and TriState Capital Bank must comply with U.S. Basel III capital rules, which establish minimum capital requirements and a capital conservation buffer[78]. - Failure to meet capital requirements can lead to regulatory actions that may materially affect financial results, including limitations on dividend payments and stock repurchases[79]. - As of September 30, 2025, both Raymond James Bank and TriState Capital Bank were categorized as well-capitalized, indicating strong financial health[88]. - The Federal Deposit Insurance Corporation (FDIC) assesses banks with over $10 billion in assets, including Raymond James Bank and TriState Capital Bank, using a scorecard method based on regulatory ratings and asset quality[85]. - The Volcker Rule prohibits RJF from engaging in proprietary trading and imposes restrictions on relationships with covered funds, ensuring compliance with market terms[89]. - RJF is required to act as a source of financial strength for its subsidiary banks, potentially providing financial assistance in times of distress[82]. - The SEC mandates that broker-dealer subsidiaries maintain minimum net capital to meet customer commitments, limiting capital transfers to parent companies[98]. - Raymond James Bank and TriState Capital Bank are subject to the Community Reinvestment Act, which requires them to meet the credit needs of their communities[91]. International and Subsidiary Regulations - The Canadian subsidiary, RJ Ltd., is regulated under federal and provincial laws, providing investor protection up to 1 million CAD per client[102]. - Raymond James Financial's UK subsidiaries are regulated by the FCA and provide investment services primarily to high-net-worth individuals, benefiting from the Financial Ombudsman Service and the Financial Services Compensation Scheme[104]. - The German subsidiary, Raymond James Corporate Finance GmbH, is licensed by BaFin and must comply with capital, liquidity, governance, and business conduct requirements[105]. - The majority of asset managers are registered as investment advisers with the SEC, subjecting them to extensive federal and state regulations[106]. Compliance and Data Protection - Compliance with the U.S. Bank Secrecy Act and related laws is mandatory, requiring financial institutions to implement anti-money laundering measures[107]. - The SEC's amendments to Regulation S-P require broker-dealers to adopt incident response programs for unauthorized access to customer information, effective December 21, 2025[114]. - The California Privacy Rights Act, enforceable in 2023, mandates additional disclosures and data rights for California residents[112]. - The E.U. and UK GDPR impose strict data protection compliance requirements on companies processing personal data of E.U. and UK residents[113]. - The company has implemented policies and training to ensure compliance with financial privacy and data security regulations[117]. Management and Forward-Looking Statements - The executive team has undergone significant changes, with multiple new appointments effective October 2024, including a new Chief Financial Officer and Chief Operating Officer[119]. - Forward-looking statements in the annual report highlight potential risks and uncertainties regarding future financial results and market conditions[123].