By Mindy Diamond, WealthManagement.com – With more wirehouse and regional advisors seeking greater independence, control, autonomy, superior economics, and the ability to customize the client service experience, independent models have been big winners. In fact, more independent models have been born in the last two years than ever before. Today, those who had been reluctant to leave their firms, thinking no exceptional alternative existed, may want to take another look at the expanded landscape.
January 1, 2014 – By Mindy Diamond, WealthManagement.com – Life happens, and those who are best prepared wind up the winners. Forty percent of practice owners wish to transition their practice to another party within 10 years, yet more than 40 percent of advisors who are within two years of transitioning their practice lack a succession plan, according to a 2012 Aite Group survey.
December 1, 2013 – By Mindy Diamond, WealthManagment.com – Most advisors are very deliberate and strategic when planning for clients. So why shouldn’t they do the same when planning for their own careers?
By Mindy Diamond, WealthManagement.com – With the heightened scrutiny in the financial services industry and the changing regulatory environment, more financial advisors are getting caught in the crosshairs of their firms’ hyper-vigilant compliance departments. While FINRA rules generally have not changed, there has been a significant increase in sensitivity about the need for stricter compliance oversight.
By Mindy Diamond, WealthManagement.com – Some of the wirehouses’ most-coveted advisors have caught the industry’s attention by making the leap to independence over the last few years, causing many to question the wirehouse model. After all, RIAs are expected to grow faster than wirehouse advisors this year, increasing their client base by 12 percent versus 7 percent for wirehouse FAs, according to Aite Group. Last year, RIA firms’ assets grew by 18 percent, versus wirehouse firms by 8.2 percent.
By Mindy Diamond, WealthManagement.com – Wirehouse advisors often have an opportunity for “instant” growth by purchasing a book of business from a retiring advisor within their firm. While this sounds simple enough and can double the size of an advisor’s book overnight, it requires careful examination from both pragmatic and legal standpoints.
By Mindy Diamond, WealthManagement.com – Breakaway broker? More like breakback broker. While the wirehouses continue to lose advisors to the independent channel, they are also luring some large teams of their own back to their ranks.
By Mindy Diamond, WealthManagement.com – Wendy started out as a sales associate for a wirehouse in the Southeast. After four years in that role, she was encouraged by the advisor she worked for to get licensed as an advisor. She had already established solid relationships with clients and knew she could learn the rest of the business. After working for three years as a junior, Wendy decided to take the clients that she had built on her own, and now eight years later, Wendy has a successful book of business with nearly $150 million in assets under management.
By Mindy Diamond, WealthManagement.com – With so many independent models launched over the last several years, these advisors can now get the business ownership they seek along with the ability to monetize their businesses. But the economics of an advisor’s business can vary from firm to firm. Here’s how they stack up.
By Mindy Diamond, WealthManagement.com – For many wirehouse advisors the lure of moving to the independent channel can be strong. These would-be “breakaway brokers” are largely free of the desire to be paid the biggest sum of money as an incentive, but are hungry for greater control over their business, the opportunity to create a brand and gain equity with less conflict and bureaucracy, and the ability to provide more customized services and products to their clients. So many top advisors and teams have chosen to go independent that, according to Cerulli Associates, RIAs and dually registered channels are the fastest growing with assets under management increasing by 13% and 19% respectively.
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