By Mindy Diamond – As the cost of doing business rises, there’s no doubt many owners of wealth management firms are feeling the pinch. With the promise of an ever more onerous regulatory environment bearing down on these same folks, many find themselves in the unenviable position of running unprofitable enterprises. So what are these business owners to do when they are at this juncture?
By Louis Diamond – Independent broker dealers (IBDs) serve a great purpose within the marketplace. By allowing advisors to own their business, self-brand and take control of their financial destiny, IBDs are often a breath of fresh air for breakaway brokers and entrepreneurial spirits. Yet while there are many multi-million dollar businesses within IBDs, there are often instances where a business has outgrown this model in favor of the registered investment advisor (RIA) hybrid space.
Howard Diamond Quoted – By Dan Butcher, eFinancialCareers – If you’re considering a move to an independent broker-dealer, small wealth management shop or registered investment adviser firm, now may not be the best time. And if you currently work at one of those, now might be the time to update your resume and prepare for an exit. “We are hearing from many advisers currently in smaller broker-dealers who are looking at other options,” said Howard Diamond, COO and general counsel of Diamond Consultants.
By Barbara Herman – While not that long ago it may have been enough for an independent broker dealer (IBD) simply to provide basic clearing and custody and perform mandatory regulatory oversight, advisors today expect much more. With so many options out there, what should an IBD advisor look for to ensure that either he is still in the right place or that any move he considers is the best one for his clients and his business goals?
Mindy Diamond Quoted – By Ann Marsh, Financial Planning – LPL Financial is naming names. Historically mum on the specific details of its recruiting efforts, the country’s largest independent broker-dealer has begun publishing names of new advisor recruits for the first time.
By Mindy Diamond, WealthManagement.com – The independent broker/dealer model can be an ideal option for an advisor who comes from an employee environment, wants more flexibility and control, likes the idea of supported independence and does some or a lot of commission business. But one of the biggest concerns among advisors considering the IBD route is how to choose a firm.
By Mindy Diamond – Ask any Business Development Officer from any custodian or service provider to the RIA space and they will tell you that the vast majority of their new business is coming from those in the Independent Broker Dealer (IBD) world. I was surprised to hear this too—until I realized that a large percentage of the advisors we are working with are independent with broker-dealers and looking to us to help them assess whether a move to the hybrid/RIA space makes sense.
By Maddy Perkins, OnWallStreet – Two former UBS advisors managing over $120 million in client assets have moved to Aegis Capital. Brother and sister advisors Jorge and Teresa Bravo left the wirehouse to join the New York-based independent broker-dealer, according to a statement from the firm. The team will work from a new branch office in Puerto Rico.
By Barbara Herman – Roger has been a financial advisor for more than 20 years, the past 12 of which he has spent as an independent business owner with a broker dealer. In that time, he has built a thriving business as a sole practitioner with over $180mm in AUM. “I love what I do, my clients are happy, and I’m adding assets at a healthy rate of 25% per year,” Roger shared. When he attended his BD’s most recent national conference, he was reminded how much he likes and respects the leadership team and how good it feels to be one of the top advisors under their umbrella.
Mindy Diamond Quoted, FundFire – A fast-growing independent brokerage practice of LPL Financial transformed itself this year to focus on registered investment advisor (RIA) compliance – but aims to keep the “fast-growing” part. By flicking the switch to send its brokerage compliance work to LPL and using its own advisor registration, Independent Financial Partners, which bills itself as the “largest RIA in Florida,” is keeping many elements of its old business model.
