Raymond James Financial (RJF) risk factors, FY2024 10-K

RISKS RELATED TO OUR BUSINESS AND INDUSTRY

1. 01Damage to our reputation could damage our businesses
2. 02Any 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
3. 03Lack of funding, liquidity, or access to capital could impair our business and financial condition
4. 04Significant volatility in our clients’ cash sweep and bank deposit balances and higher costs in sourcing such balances could negatively affect our net revenues, our Bank segment’s growth, and our regulatory capital ratios
5. 05We are exposed to litigation and regulatory investigations and proceedings, which could materially and adversely impact our business operations and prospects
6. 06Our business is sensitive to domestic and international macroeconomic conditions caused by political and geopolitical developments, fiscal, monetary, and tax policies, regulations, and other domestic or international events
7. 07and conflicts, such as the wars in Ukraine and Israel, or public health epidemics and pandemics, as well as by a number of factors in the global financial markets that may be detrimental to our operating results
8. 08We are exposed to credit risk
9. 09We are exposed to market risk, including interest rate risk
10. 10Our ability to attract and retain senior professionals, qualified financial advisors and other associates is critical to the continued success of our business
11. 11Our business depends on fees generated from the distribution of financial products, fees earned from the management of client accounts, and other asset management fees
12. 12Our underwriting, market-making, trading, lending, and other business activities place our capital at risk
13. 13A 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
14. 14The soundness of other financial institutions and intermediaries affects us
15. 15Our risk management and conflicts of interest policies and procedures may leave us exposed to unidentified or unanticipated risk
16. 16We face intense competition and pricing pressures and may not be able to keep pace with technological change
17. 17A downgrade in our credit ratings could have a material adverse effect on our operations, earnings, and financial condition
18. 18Business growth, including through acquisitions, could increase costs and regulatory and integration risks
19. 19Associate 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
20. 20We are subject to risks relating to environmental, social, and governance matters that could adversely affect our reputation, business, financial condition, and results of operations, as well as the price of our common and preferred stock
21. 21The preparation of the consolidated financial statements requires the use of estimates that may vary from actual results
22. 22Our operations could be adversely affected by serious weather conditions
23. 23We are exposed to risks related to our insurance programs

RISKS RELATED TO OUR REGULATORY ENVIRONMENT

1. 24Financial services firms are highly regulated and are currently subject to a number of new and proposed regulations, all of which may increase our risk of financial liability and reputational harm resulting from adverse regulatory actions
2. 25Continued asset growth may result in changes to our status with respect to existing regulations as well as increased oversight, which will result in additional capital and other financial requirements and may increase our compliance costs
3. 26Changes in requirements relating to the standard of care for broker-dealers have increased, and may continue to increase, our costs
4. 27Numerous 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
5. 28Failure to comply with regulatory capital requirements primarily applicable to RJF, Raymond James Bank, TriState Capital Bank or our broker-dealer subsidiaries would significantly harm our business
6. 29The Basel III regulatory capital standards impose capital and other requirements on us that could negatively impact our profitability
7. 30As a financial holding company, RJF’s liquidity depends on payments from its subsidiaries, which may be subject to regulatory restrictions

RISKS RELATED TO AN INVESTMENT IN OUR PREFERRED AND COMMON STOCK

1. 31The rights of holders of our common stock are generally subordinate to the rights of holders of our outstanding, and any future issuances of, debt securities and preferred stock
2. 32The depositary shares representing our preferred stock are thinly traded and have limited voting rights