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How one IBD rep just zoomed to $1 billion AUM -- on his way to $2 billion -- but remains impervious to calls from RIA custodians

Tom Bartholomew says that his pull with Commonwealth gives him more time with clients and extra-responsive service

Author Lisa Shidler March 27, 2013 at 4:16 AM
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Tom Bartholomew: I don't have to have the downtime and overhead and the legal costs of running the independent RIA.

Frederick Van Den Abbeel / TradePMR

Frederick Van Den Abbeel / TradePMR

March 27, 2013 — 3:50 PM

Reminds me of an old quote: “Cost is only an issue in the absence of value.” I applaud Mr. Bartholomew for reaching such a significant milestone. There will always remain viable cases to remain with an Independent B/D in spite of the payout structure. If the Advisor feels he/she is obtaining sufficient value at the agreed payout schedule, seems to be a “win-win” for all concerned. It’s those advisors who feel the costs associated with a B/D aren’t being justified in their eyes why most consider going RIA to earn 100% of their own fees.

Based on my experience, some Registered Representatives feel they are subsidizing tools and services being provided by the B/D for which they themselves don’t find valuable or necessary in their business. If you are earning a 90% and allowing the B/D to retain 10% but don’t feel the 10% is justified, perhaps then, might be time to explore other possibilities.

Mentioned in this article:

Finetooth Consulting
Consulting Firm
Top Executive: Ryan Shanks

Commonwealth Financial Network
RIA-Friendly Broker-Dealer, Tech: Other
Top Executive: Wayne Bloom

FA Match
Consulting Firm, Specialized Breakaway Service, Recruiter
Top Executive: Ryan Shanks

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