LPL's biggest rep, Ron Carson, will convert his firm to an independent RIA
The big IBD is staying in the picture but Carson is also forming its own broker-dealer; Schwab, TD Ameritrade get assets
4 min read- Carson Wealth, LPL's largest rep with $3B AUM, will become an independent RIA in July.
- Move aims to optimize pricing, enhance technology, and improve communication for Carson's clients.
- Trend shows IBD reps increasingly starting RIAs, blurring lines between custodians and IBDs.
Brooke’s Note: This news broke at the last minute. If we gain additional perspective we’ll add it to the article.
Carson Wealth Management Group announced its intent to become an independent RIA.
The Omaha, Neb.-based company will complete the move in July as a means of remaining competitive in today’s environment. Founded in 1983, Carson Wealth Management Group has been the #1 advisor at LPL Financial for 20 years.
“We realize that the marketplace is demanding more and more from advisors. We want to continue to stay ahead of the competition and this required a move to our own RIA,” Carson said in a release.
Custodians and recruiters say that growing number of big IBD reps are starting their own RIA and moving assets. See: IBD reps are new wave of breakaways to the RIA channel and Virtually all big IBD reps covet the independent RIA life, Schwab study says
Why exactly is Ron Carson forming an RIA and why is it happening now?
In a statement, Carson added: “The new RIA will help to optimize pricing arrangements for clients, offer enriched technology platforms, and enhance real-time communication and rationale for portfolio transactions.”
Charles Roame, managing principal of Tiburon Strategic Advisors, says the move by Carson is important for what it says about where the advisory industry is headed.
“I see this as a very public re-affirmation of three trends: The fee-only trend is alive and well. At least part of the breakaway broker movement is from IBD rep to RIA. There is a lessening difference between custodians and IBDs.”
The move is particularly notable because Carson Wealth is LPL Financial’s largest rep firm with about $3 billion of AUM.
Story Timeline
The new firm will continue to keep some assets with LPL after it turns independent. “I … couldn’t be more thrilled to continue our relationship with LPL, who has been, and will remain, a trusted partner,” said Ron Carson, CEO and founder, in the release.
LPL spokesman Joe Kuo explained the partnership in this way: “In terms of assets under custody, we expect nothing will change for LPL. Ron Carson has stated his intention to continue to keep client assets that he currently has with us. We expect that all of Ron’s advisory assets that are custodied with LPL today under our corporate RIA will stay custodied with us under his own new RIA on our RIA platform. These assets represent the vast majority of assets under Ron’s management.”
Ron Carson quickly sees benefits of converting his practice to an RIA
But Carson also told InvestmentNews (IN) that he is moving assets to Schwab Advisor Services and TD Ameritrade. He cites shortcomings in LPL’s platform to IN. Other advisors recently made similar moves. See: TD Ameritrade makes a clean sweep of five IBD reps in New England with about $1 billion of combined AUM..
LPL has been growing its RIA custody unit rapidly since 2008, though few of its RIAs came over from the IBD side of its business. See: LPL’s hybrid RIA platform is fast off the mark and names new leaders for 2010 and How LPL lured advisors from Raymond James, UBS and Ameriprise to its hybrid RIA platform.
LPL’s Bill Dwyer: We are pleased
to support virtually every business model
available to providers of independent and
objective financial advice, including those with
their own RIA or at a
separate broker-dealer.
However, Carson also announced that it will form its own broker-dealer late in the year.
“We expect that all of the brokerage assets that LPL custodies and clears for Ron today will continue to be custodied and cleared by us when Ron establishes his own broker-dealer,” Kuo says.
Carson’s entrepreneurial prowess extends to other enterprises. See: The top LPL producer has a second RIA-related company that could eclipse the stature of the first one..
Bill Dwyer, president, national sales and marketing at LPL Financial, says in a release that he is pleased with the move. See: What LPL’s Bill Dwyer had to say about recruitment, and pressure from custodians..
“We are delighted to further our 20-year relationship with Ron and to support his efforts in continuing to provide a cutting-edge experience to all of his clients. As one of the nation’s leading independent broker-dealers, custodians, and providers of clearing services, we are pleased to support virtually every business model available to providers of independent and objective financial advice, including those with their own RIA or at a separate broker-dealer.”
Editor’ Note: LPL could not be reached for comment by the time of publication on but were added at 11:33 EST Monday.
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