What is the splits out there if one is a RR working for a RIA. Also is there any standard contracts for an independent contractor.
Presently I am working without contract and 45BP split.
An RR does not work for an RIA. An RR works for a b/d. An IAR works for an RIA.There are no standard contracts that all RIAs use, nor are the terms offered uniform. It varies by RIA and would likely depend on exactly what you bring to the table. You need to better understand the playing field before worrying about what position you might play and how much you might earn.
Ok thks. The RIA I work for is presently working through BD. Interesting there is no split info out here. If I bring 20 million to table seems like 70/30 split is fair.
It depends on what value the RIA is providing (office, rent, computer, marketing, mentoring, etc.) to justify his override.
[quote=philow]Ok thks. The RIA I work for is presently working through BD. Interesting there is no split info out here. If I bring 20 million to table seems like 70/30 split is fair.[/quote]
Just to clarify for you, if there is a b/d involved, the RIA is dually registered. Rather than the RIA “working through BD” it means the commission business is run through the b/d via the RRs, while the non-commission business never touches the BD but is run by the RIA.
What expenses are you responsible for?
Ummm yeah. We are in the midst of the largest shake up of financial markets worldwide in the last 150 years and you are worried about THIS shit???Do you know how close we were last Wednesday to a total world wide financial meltown that would rival 1929? And how close we still are? Obviously not?
Make sure you don’t sign a contract with a 45bps split.
Sorry, but it drives me nuts when people use jargon incorrectly if they are supposed to be in the business. A basis point (bp) = .01%. So, perhaps you meant 4500bps.