Super-OSJs are not only here to stay for the long term, but some of them may outlast the Broker-Dealers. There is no arguing that these firms are also competing and some are struggling in a margin compressing environment, but like so many other industries, the strongest won't just survive, they will thrive. Read More
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So far Jeff Nash has created 70 blog entries.
"Three former LPL Financial recruiting executives have launched their own firm, aiming to tap their many contacts while helping financial advisors address important questions often overlooked during outreach by prospective employers." Read More
This is an article I wrote which was published in Barron's. This article highlights some of the differences and risks associated with institutional alternative investments vs. alternative investments that market themselves as "institutional quality". Too often we rush through our due diligence based on a sales or marketing presentation. Whether it is related to selecting the right investments for clients or evaluating a change of Broker/Dealer, these are important decisions and you should know the pros, cons and risks of that decision. Reposted from Barrons.com READ THE ENTIRE ARTICLE HERE If you’re an advisor who is considering moving from one independent broker-dealer to another, here’s something you should consider: Different platforms often tout their retail alternative-investment products as “institutional quality,” when in fact they’re not. It’s an easy issue for transitioning advisors to overlook. But in doing so, they may ultimately create unwanted risk for their clients and themselves....
This article from Think Advisor highlights the shrinking of Broker/Dealers and the expansion of RIAs. The entire industry is doing more fee based advisory business, which is being driven by the DOL. The real question that should be asked isn't is Finra outdated, it is when will Finra start overseeing RIAs? While there are plenty of people who hope that never happens, it is just a matter of time before we start to see and hear Finra and the SEC begin discussing an SRO for RIAs. As a result of the DOL's fiduciary rule for IRAs, the SEC has re-energized their evaluation to create a single fiduciary standard for everyone, brokers and advisors and IRA and non-IRA accounts. Once that happens, we will have the same standards for everyone. Therefore, if we have one standard, doesn't it seems logical that Finra will be the SRO to oversee everything. If that happens, how [...]
I wrote this article to highlight the differences for advisors between how consultants are different than recruiters. In short, a consultant will focus on their clients’ needs, similar to a financial advisor - whereas a recruiter tends to focus more on closing the sale. Read this article to better understand the differences and pros and cons of each. Reposted from Wealth Management.com READ THE ENTIRE ARTICLE HERE
Under the right circumstances, Banks can be a great partner or succession plan for an independent advisor or RIA. Unfortunately, not all banks are the same, but those that are progressive in their thinking can be a great partner or succession plan for an independent advisor. Banks have money to spend and are continuously looking for ways to increase and diversify their revenue. This isn't the first acquisition we have seen by a bank, and if the banks are smart, we may see many more. With my help, Hans and Salem Five recognized the synergies between the two firms which is what made this a great deal for both. For me, it was a great opportunity to consult on this, to help it come together and get it done. Reposted from INVESTMENT NEWS READ THE ENTIRE ARTICLE HERE
Too often advisors don't ask some of the most critical questions when evaluating a new B/D. Too many times advisors select a B/D based on a "feel" or someone else they know that has experience with the B/D. Changing a B/D can be both time consuming and expensive and making a mistake can really hurt your business and risk losing clients. There are some basic tactics and questions that can help you make sure you are selecting the right B/D for your business. Below is a link pasted to an article published in FA Magazine.com that provides insight into some of the important questions you should ask a prospective new B/D. Reposted from FA Magazine READ THE ENTIRE ARTICLE HERE
For the last several years we have repeatedly heard about successful advisors leaving their Broker/Dealer and "breaking away" to become an RIA. There are many different and personal reasons advisors choose to break away. However, there are two benefits that have been applicable to just about everyone. The first has been a higher payout than working through a B/D and the second has been less compliance headaches (and oversight). Both of those new seem to be changing. The DOL's rules begin phasing in next April and has been dominating the press. While there are clearly aspects of the DOL that will impact RIAs, for the most part it requires more significant changes for B/Ds. As I have mentioned in the past, on the heels of the DOL will be other sweeping changes initiated by the SEC. These requirements will likely have a much greater impact on RIAs compared to previous rules and will [...]
Both RIAs and Broker/Dealers will have the same fiduciary standard when selling investments or making recommendations to clients. This issue dates back to 2010 when Dodd/Frank officially became a law. For those of you who aren't tracking the status of Dodd/Frank, within Dodd/Frank there is a provision for the SEC to develop a single fiduciary standard for Broker/Dealers and RIAs. The SEC was supposed to report to Congress back in 2011 if a single fiduciary standard should be required, the SEC determined that it was needed. Congress then empowered the SEC to determine the cost and best way to implement a single standard, which is where it is stuck today. The DOL has accomplished in about a year what has taken the SEC over five years and counting to work on. However, now that the DOL has done much of the heavy lifting for the SEC, expect to hear more from the SEC about a [...]
There seems to be a weekly news article about a different Broker/Dealer going through a crisis situation that could have broad implications on their advisors. Whether it is being sold, having large compliance fines or capital restructuring, these events can have far-reaching implications that can affect their advisors and more importantly the way they do business. These events don't always mean the ship is sinking and you need to find a new B/D. However, you owe it to yourself and your clients to understand what is really going on and what may be the implications and long term changes as a result of this event. This article walks you through the steps you should take. Reposted from WealthManagement.com READ THE ENTIRE ARTICLE HERE