Richard G. Averitt III on the ability of Raymond James Financial Services to navigate the choppy waters of today's market, along with some advice for rookies.

At a time when financial services firms are struggling to stay afloat, Raymond James is swimming with some ease. Assets for the Raymond James Financial Services (RJFS) division rose 7% in the 12 months ending in May, even as the Dow Jones was down more than 7% for the same period. And Raymond James Bank had just .09% of its loans marked as nonperforming in 2007. While that's increased to .21% as of mid-June, that's still low for the industry. Dick Averitt, chairman and chief executive officer of RJFS, and a 32-year veteran in the financial services arena, has seen other market downturns in his career and is not surprised by his company's ability to thrive. He says that its conservative blend has been its life jacket and he feels the firm will weather these choppy waters, too.

Q: How have conditions affected financial services?

A: The whole downturn has had a material affect. Many believe most major writedowns have already happened. I certainly hope that's correct, but I believe there will be more bank failures. Still, most bull markets start with a recession. That's why it's important for consumers to keep a long view.

Q: Is today's market a strong argument for asset-based advisors?

A: Over two-thirds of RJFS revenue comes from accounts that are asset-based. It's a useful way to position oneself with clients. Using fees versus commissions isn't a value judgment. But we encourage our advisors to use it as an option. It helps insulate you from a downturn. When markets decline and people are concerned about the outcome, traders who just buy and sell walk away—so advisors' commissions drop sharply. Fee-based advisors' income may drop slightly, but not dramatically.

Q: What tools are now critical for financial advisors?

A: We realize we're now in the education business, whereas we really weren't before. We do a very good job putting research and commentary on desktops, along with powerful new technology, all of which enables our advisors to constantly communicate with clients. An advisor can build his or her business in bad times more easily than in good times, especially if competitors aren't communicating with their clients.

Q: What's ahead for the firm in the next six to 12 months?

A: We are doing a thorough job of how we package our services so our best clients get our best attention and don't pay account fees. We're always going to be egalitarian but we think we can be attractive to large clients without disenfranchising our smaller clients. Also, we're continuing to invest in our technology and our people. We have very low turnover offinancial advisors, well below 1% a year.

Q: If you were hanging a shingle out today, what do you think would be your first move?

A: Hanging out a shingle today is tougher than it was 32 years ago when I began, because the way advisors earn a living today is so different. My first move would be to affiliate with an experienced, veteran advisor who shared my values of putting clients first, who was going to retire in five to 10 years. I would look for someone with absolute integrity, and willing to teach and mentor a successor.?