February 9, 2022
Louis Diamond Quoted
by Jeff Berman
The shift that first LPL Financial and now Commonwealth Financial Network have made from production rates to asset levels when calculating transition assistance for recruited advisors makes sense based on the evolution of advisor books to an increased percentage of advisory assets, according to industry recruiters.
With books of business increasingly being made up substantially of advisory assets, “evolving to transition money based on basis points rather than a percentage of gross dealer concession is a logical move” for the independent broker-dealers, Jon Henschen, founder of Henschen & Associates, told ThinkAdvisor in a phone interview.
The shift in strategy stands to also help IBDs trying to compete with RIA custodians and other IBDs for advisors, Louis Diamond, president of Diamond Consultants, said Monday.
