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Why a $750 million LPL hybrid is selling its annuities expertise by eyeballing client contracts for RIAs

VAs aren't all bad, according to one New Jersey RIA -- in fact, some yellowing agreements are well worth a second look and could be worth keeping

Author Lisa Shidler March 26, 2013 at 3:23 AM
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Mark Cortazzo: I don't feel bad for the person who was expecting this residual revenue, because they're not doing their job.

Hybrid RIA

Michael Cocozza

Michael Cocozza

March 26, 2013 — 5:06 PM

It would be interesting to cover how Cortazzo’s firm overcomes the conflict of interest that seems to be present, given that Cortazzo’s firm takes over the trailing commissions on annuities that are not surrendered.

Stephen Winks

Stephen Winks

March 26, 2013 — 5:29 PM

Brilliant strategy.

You would think this sort of expert diagnostic insurance service would be performed by a broker/dealer so the broker would have performed their fiduciary duties before the sale but brokers are neither accountable nor responsible for their recommendastions so b/ds are not compelled to act in that capacity.

This diagnostic is the future of advisory services support, where well informed recommendations are made where the advisor is accountable and responsible for their recommendations, both continuously and comprehensively. If things change then it is the responsibility of the advisor to take corrective action.

Great idea whose timw has come. Rather than focusing on selling products, the emphasis shifts to monitoring everything the client owns and managing it in the best interest of the investing public. This makes the use of high cost packaged products unambigously counter to the best interest of the investing public and shifts the focus from product sales to the continuous comprehensive responsibilities required of fiduciary standing.

Retail product distribution without and overarching investment strategy (a fiduciary duty) becomes obsolete, counter to the best interest of the investing public. Even product sales requires ethical behavior to include a suitably cost effective client recommendation.


Mentioned in this article:

NCS Regulatory Compliance
Consulting Firm
Top Executive: Mark Alcaide, COO/Partner

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