Brokers contemplating going independent?

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Sep 22, 2008 3:30 pm

I own an SEC RIA firm based in Chicago and am interested in talking with brokers that are interested in leaving their brokerage firms to move to an RIA model.  I’d like to make contact with brokers who might be interested in joining my firm (with equity in my firm as an option.)  However, I don’t have many contacts in the B/D world.  Are there consultants or recruiters that work with brokers considering leaving that anyone would recommend?  Any other ideas for how to get the word out to brokers looking for alternatives?  Thanks.

Sep 24, 2008 7:45 pm

For Wirehouse Brokers to turn exclusively RIA Independent might be somewhat problematic depending on their business mix.  Some Wirehouse Advisors may already be 80% + Investment Advisory while others may have a significant amount of commission based assets.

  It would appear, as a suggestion, the Hybrid Advisor Model might be most appropriate.  It would allow Wirehouse Advisors transitioning to RIA business to be able to accomodate commission assets because they would still maintain an affiliation with a Broker-Dealer.   Factors to Consider as you evaluate:   1. Will the Broker-Dealer Support outside RIA business? 2. Will it be economically feasible to pay a B/D haircut on RIA Business (some firms charge a haircut while others do not -- depends on circumstances) 3. Will the proposed broker-dealer charge any type of Admin Fees for outside RIA business 4. Any other RIA restrictions (i.e. certain products and services) implemented by the B/D   I would tread with caution as not every Hybrid Advisor program is the same.  Feel free to contact me for additional information as I am keenly aware of the solutions facing your proposition.
Sep 24, 2008 8:18 pm

Mr. Trade-PMR, nice job of the hijacking a thread with and unpaid commercial.  If you would take the time to provide both relevant and helpful information on a topic you no doubt know well, your participation here would be warmly applauded.  Look to Bill Singer as an example who often helps with general legal insight here WITHOUT advertising for free or explicitly trolling for business.  No doubt he gets some business but it’s as a result of providing information that demonstrates how he can add value for people.  Please consider a similar approach stick around - you would offer a helpful perspective. 

ChicagoRIA, to address the question you asked, have you tried using your custodian as a resource in this?  They obviously come into contact with prospects that might be a match for you yet may not, for several reasons, be good prospects for starting their own RIA.  I know Schwab has a formal program on their website where firms can post openings and individuals can post interest. 

Sep 25, 2008 9:33 am

ChiRIA -

  Go to the FAS show in Chicago in a few weeks.  I bet you run into a bunch of independent reps and advisors.  Also I work in Chicago, PM me your info, if I run into anyone, I can send them your way.   FYI - Morphius - I do not work for Financial Advisor Magazine, so I am not trying to promote their show (in case you still had your piker alert hat on)
Sep 25, 2008 1:10 pm

FYI - Morphius - I do not work for Financial Advisor Magazine, so I am not trying to promote their show (in case you still had your piker alert hat on)