Moving need advice on due diligence?
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It is just not possible for a well managed BD which has a rep running their own RIA to “leave that RIA completely alone.” The BD has a regulatory and financial obligation to see that the particular RIA business is conducted properly. In this situaton the BD may make an arrangement not to invade RIA revenues, but insted to make it’s money on the rep in other ways. Naturally one may always find firms who make exceptions, somone here mentioned Sterne - Agee. Stern has some 86 pages of “public disclosure” in CRD (the average for a clean firm is 21-24 or so), Stern has, among other things, 31 publically disclosable regulatory events. Never mind what is not disclosable. Folks should look prior to leaping.
[quote=iceco1d] [quote=CALI123] [quote=icebear48]
Find an independent BD that will allow you to attach your own (nonafilliated) RIA.[/quote]One of the issues I had was even with a separate RIA, the b/ds said they had the right to supervise all outside activities. So even though the RIA was separate, they could still get their claws into it (and take 10% of the revenue for over site). I spoke to a headhunter about this and he said having a stand alone RIA where the b/d has no oversight just doesn't exist anymore.
I would be interested in hearing if anyone has found a b/d that will leave the RIA completely alone.
[/quote] How does Stern Agee do on ticket charges. I believe in their wrap programs, the FA absorbs it, but not sure for RIA.
I think Stern Agee will pretty much let you do your thing (this is the b/d that Fred @ TradePMR sends people to). They don't invade RIA revenue, but they do have a min. production requirement of $100K a year (in commission biz, put through Stern Agee).
[/quote]
WOW
It is just not possible for a well managed BD which has a rep running their own RIA to “leave that RIA completely alone.” The BD has a regulatory and financial obligation to see that the particular RIA business is conducted properly. In this situaton the BD may make an arrangement not to invade RIA revenues, but insted to make it’s money on the rep in other ways. Naturally one may always find firms who make exceptions, somone here mentioned Sterne - Agee. Stern has some 86 pages of “public disclosure” in CRD (the average for a clean firm is 21-24 or so), Stern has, among other things, 31 publically disclosable regulatory events. Never mind what is not disclosable. Folks should look prior to leaping.
Or you could not do any commission biz and not have to worry about a B/D putting their hands in your pocket.
[quote=icebear48]
With the business you describe LPL and RJ are not the best choices, additionally, we believe both of these firms will undergo substantial structural changes in the next couple of years (as will the industry in general). [/quote]Who’s we?
What changes?
I’m midwest also…about 40% fee-based, but about 90% fee/trail-based. LPL has worked fine for me, but I don’t require a lot of assistance. They are like everyone, there are occasional reasons to complain (recently they’ve been a pain in the @ss on CIP issues), but in general, I’m satisfied. As some have said, if you don’t mind leaving part of your book behind and going 100% fee-based, an RIA would be hard to beat. I prefer the flexibility of having a commission-based option, so a pure RIA is out of the question for me.
[quote=StockJock1] [quote=icebear48]
With the business you describe LPL and RJ are not the best choices, additionally, we believe both of these firms will undergo substantial structural changes in the next couple of years (as will the industry in general). [/quote]Who's we?
What changes?
[/quote] You don't know WE? nobody does...