The flexibility custodians provide advisors are forcing OSJs to explore starting their own RIA to remain competitive. As OSJs look to add advisors, they need to provide more resources and flexibility to attract advisors and differentiate themselves. Being a hybrid firm with their own RIA is becoming one of those differentiators for firms. Read More
The need to recruit new advisors, fueled by the insatiable appetites for growth of private equity firms who own BDs and RIAs as well as the short term focus of publicly traded companies is going to heat up the recruiting wars and money available for the rest of the year. Read More
There is an expression we all know, "the cobblers kids have no shoes". The metaphor implies cobblers are too busy helping their clients instead of themselves. This can often be true of advisors as we see statistics in the industry supporting that theory, such as majority of advisors that don't have a succession plan or are too busy to focus on their own business. This article highlights many of the things advisors should focus on and should use this time where they are home to do so. Read More
Increasingly advisors are evaluating becoming their own RIA and the risks and rewards of doing so. This trend has created a new segment of firms for advisors to evaluate. Hybrid-Super-OSjs, these firms can provide the scale that includes more affordable compliance and technology as well as a multi-custodial platform which advisors are seeking. Some of these solutions are even owned by the IBD where others just look to partner with IBDs. Anyone evaluating their own RIA should also consider this group as they are rapidly gathering assets and scale. Read More
The recruiting wars are here. It was just a matter of time before it happened to the Independent BD and RIA space. With so much money being invested by private equity firms into IBDs and RIAs, we were going to inevitably have recruiting wars that was going to drive up deal prices. The one thing all of these institutional investors have in common is an insatiable thirst for growth. Be careful not to get caught up in "the deal" and do your due diligence for the right fit. Read More
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
"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
