Hybrid RIA

Adherents of the hybrid RIA model seem to understand the world in the same terms as Puritan dissenters, now known as Baptists, Quakers, Presbyterians, Unitarians and Congregationalists. The members of those offshoots avoided the fate of the Puritans who believed a little too ardently that grace could not be earned, only bestowed by God. The Puritans are now extinct. More inclusive splinter sects that accommodate striving sinners, on the other hand, have gone on to survive and prosper. Hybrid RIAs espouse a new world order of accountable advice that errs on the side of inclusion of brokers despite their propensity for sin inherent in their inevitable conflicts of interest. RIA purists see this more-the-merrier mindset as too much fiduciary disharmony to throw at clients and an unsettling bifurcation when building a successful, long-haul business. RIA hybrid enthusiasts say the success of this model – and it is the fastest growing in the advisory world -- speaks for itself and that such firms house the best of the transactional brokerage business and the fee business under one roof. Moreover, these evangelists see the hybrid model as a means of bridging the gap between a whole generation financial advisors by leading captive wirehouse brokers to a model that offers more objective, open- architecture advice. Whatever side a reader falls on this dynamic topic certainly deserves a reader section for itself and we are proud to present it.


Jeff Concepcion: 'I don't want to say there's unlimited dry powder ... [but] there's an awful lot ...'

Jeff Concepcion and Howard Milstein combine to take dead aim at COVID-distressed RIA market -- putting youthful executive energies and a billionaire's capital on a bold path

Both the Stratos Wealth CEO and the owner of Emigrant Bank are known to be conservative in RIA circles, but together -- shooting for upper-strata firms with as much as $750 million -- they are showing uncharacteristic opportunism.

April 24, 2020 — 8:37 PM by Oisin Breen

Brooke's Note: This deal was so unimaginable five years ago. Jeffrey Concepcion was another OSJ among the LPL herd. Emigrant Bank was the quiet force behind Mark Hurley, and he was never known to take big risks. Howard Milstein was the passive force behind Emigrant. Multiple degrees ...

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Derek Bruton: Keith and I agreed that our RIA and BD would benefit from additional outside capital to pursue our M&A growth strategy for that business.

Derek Bruton rides again as CEO of Chalice Wealth Partners IBD and RIA, after Kingswood acquisition splits units from the services outsourcer

The dynamic duo of Keith Gregg and Derek Bruton has split into solo acts -- with Bruton joining British roll-up arrivistes, Kingswood. But there's no hard feelings, say the pair.

January 21, 2020 — 7:52 PM by Oisin Breen

Brooke's Note: In the RIA business there is a giant built-in safety net for all of us -- high demand and low supply of people who can speak the language of this exploding RIA category. That net for RIA linguists comes with pillows if you ...

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Melissa Loner will serve as the CCO of Independent Financial Partners

Independent Financial Partners makes anchor poach from Cambridge Investment Research to solidify compliance after losing LPL backstop

No longer an OSJ, Tampa-based IFP secures Melissa Loner as its chief compliance officer

September 12, 2019 — 10:40 PM by Sophia Noto

Brooke's Note: The one thing you absolutely, positively have to get right as an independent broker-dealer is to make sure all those far-flung reps live by the rules, because otherwise, you'll be held accountable. The other thing you have to get right is to maintain a ...

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Dr. Ajay Dravid: Fees that are at least partly … contingent on beating a benchmark are in investors’ best interests.

Oisin's Bits: Equinox pledges to beat market, and rivals, before collecting fees • Orion-parent TA Associates readies roll-up spree after $375 million purchase • Sanctuary adds breakway No. 26 to $10 billion haul, reeling in Morgan Stanley firm eager to shed 'old mindset'

Equinox Funds, a small, academic asset manager, launches a mutual fund with fees tied to performance; now the results are in • TA Associates, owner of Orion Advisor Solutions, acquires a beachhead for RIA roll-up spree • It's full steam ahead for Sanctuary's Jim Dickson who bags breakaway No. 26

August 28, 2019 — 3:24 AM by Oisin Breen

Last year, a small hedge fund broke with industry practice and put its money where its mouth is. It challenged the sector's notorious 'heads-I-win, tails-you-lose' mutual fund fees.

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Dean Zayed: 'I’ve got lots of skin in the game. This isn’t an exit strategy.'.

AmeriLife just bought a $2.7-billion TAMP based on growing belief pre-packaged RIA services and commission-sold insurance can be sold out of the same briefcase

The Clearwater, Fla. insurance marketer bought Brookstone Capital Management with faith that insurance agents can moonlight as part-time RIAs

August 22, 2019 — 5:52 PM by By Lisa Shidler

Brooke's Note: The idea of having a turnkey asset management program that turns non-wealth managers into wealth managers is not entirely new. The most famous is BAM Advisor Services which turns accountants into advisors and has about $15 billion of AUM to show for it. Brookstone is ...

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Jim Dickson: Our growth has been record setting [and] our pipeline today is much greater than it was a year ago ... We’re growing so fast it’s hard to keep up.

A 20-year Merrill Lynch veteran got Sanctuary Wealth to $10 billion in AUA in 15 months with no outside capital and no time in bed: 'Nobody's slept since April'

Jim Dickson also recruited HighTower talent, Amit Dogra, to bring the old HighTower brokerage model and execute it as HighTower veers toward buying RIAs

August 15, 2019 — 7:58 PM by Oisin Breen

Brooke's Note: So many platforms with so may flavors of vanilla are cropping up. See: The Derek Bruton effect gets louder as two ex-LPL talents join Chalice And why not? Many of them do well in short order. As journalists, we can only gauge so ...

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Ed Higham: It's not despite the employee-model, it's because of it. They see this as another channel.

LPL Financial jumps into the full-service brokerage business via acquisition -- with help from Raymond James' Silver Lane Advisors

The San Diego-based independent broker-dealer will pilot captive model with purchase of $3-billion, 30-broker Allen & Co. as launching pad

May 22, 2019 — 2:31 AM by Brooke Southall

LPL Financial Holdings Inc. can no longer be called a pure independent broker-dealer. Watch out Wall Street.

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Dan Arnold: I think, you also see, with maybe some progress on the regulatory front, more willingness to use brokerage with existing -- existing advisors using brokerage as a potential solution to help clients.

LPL Financial shares zoom to all-time high of $77, after new CEO lets brokers sell like hell, and RIA custody and OSJ contracts achieve new balance

Dan Arnold steers Fort Mill, S.C. IBD giant on walk-and-chew-gum course that allows for juicing annuity sales, rebuilding RIA fee platform and squeezing more profits from less revenue

February 7, 2019 — 12:13 AM by By Lisa Shidler

Brooke's Note: Sometimes share prices are misleading. More often, not. LPL gets lots of critical media because of the wrenching change it is undergoing and its Goliath standing as an IBD. So you might think its shares would be swooning. Not at all. LPL is ...

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Burt White: We'd love to integrate annuities.

LPL Financial's $28 million cash purchase of AdvisoryWorld solves one big problem: Now it can make sure the proposal software includes annuities in its proposals

The Fort Mill, S.C.-based IBD is the No. 1 annuity distributor in the United States but it still cranks out proposals focused on stock/bond allocations

December 4, 2018 — 10:46 PM by Brooke Southall

Brooke's Note: One thing I focus on in this article is Burt White and the role he is playing at LPL Financial. Here is a guy who came to the firm in 2007 and quietly rose to prominence with lots of bigger name executives. Dan Arnold came right ...

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Eric Clarke: We need to be willing to embrace the advisor's vision, even if at times it means we have competitive overlap.

Orion wins its 95th LPL advisor to show it's also advancing on Envestnet in the broker-dealer market and greening up its pastures

The Omaha, Neb.-based software maker just bagged $5-billion AUA OSJ, Independent Advisor Alliance

August 13, 2018 — 5:54 PM by Oisin Breen

Brooke's Note: Much of what is exciting in the RIA business is the creation of new models. But the other side of it is that new combinations, in concert with evolution, are creating a mutant class of stronger players. LPL and Orion teaming up to take on ...

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Andy Kalbaugh: We recently complied with a regulatory inquiry from the SEC to produce mutual fund holdings over the last five years for RIAs that transact business on our custodial platforms.

LPL issues urgent warning to RIAs: The SEC wolf blew down its home-office door and is combing through records for evidence of mutual fund share class misuse

Andy Kalbaugh emailed a letter to LPL advisors that file their own ADVs as a sort of fair-warning heads up

July 25, 2018 — 10:37 PM by By Lisa Shidler

Brooke's Note: Even people ensconced in the RIA business have to constantly qualify what "RIA" means. What exactly is an RIA? It becomes particularly challenging when the topic turns to hybrid RIAs who operate as reps at independent broker-dealers. Unlike their RIA colleagues, who keep ...

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Keith Gregg:  I own this company and I don't need anyone or anything else.

Derek Bruton joins Keith Gregg as Chalice Wealth Partners makes urgent Dynasty-lite bid bolstered by $4.5 million and Aaron Schumm

The two San Diegans of LPL and First Allied fame are hungry for success and redemption after a few stop-and-go years

May 4, 2018 — 10:30 PM by Oisin Breen

Brooke's Note: Looking back at what went right with our RIABiz startup, near the top of the list was the pervasive sense that there was no plan B if it all went wrong. So I find Keith Gregg expressing a similar sentiment compelling. At some point ...

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Bill Hamm: What LPL is doing is trying to level the playing field – which makes sense. I think we just decided there are things we wanted to do that are better done on our own.

LPL Financial pulls pricing lever after Bill Hamm moves to yank $12 billion and 500 advisors off the IBD's line

The CEO of Independent Financial Partners will take 12 months move the asset trove to his own broker-dealer giving LPL time to woo reps looking for the door

May 3, 2018 — 10:01 PM by By Lisa Shidler

Brooke's Note: Call me Old School but when a company is slashing its rates, I am inclined to believe that it isn't doing so from a place of strength. Prices generally go down when demand diminishes. LPL Financial is cutting and eliminating fees at a time ...

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Paul Reilly confirmed that, for the first time, the fastest growing segment in the firm’s private client group last fiscal year was its RIA channel.

In calm after storm Raymond James showcases three RIA tipping points at RIA confab -- and two of them are good

The St. Petersburg, Fla.-based broker-dealer took unabashed aim at the brokerage model as Tom Giacchetti warned RIAs about an SEC no longer content with firing warning shots

October 12, 2017 — 8:57 PM by Guest Columnist Anthea Penrose

Brooke's Note: What happened at the Raymond James RIA conference at the Boca Raton Resort Oct. 2-4 stayed at the ... you know. Except for what ended up on the pages of RIABiz. For that we can thank Anthea Penrose, public relations manager for Raymond James private client group. Raymond ...

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Andy Kalbaugh: This is not a new fee, rather a simpler way for both of us to administer the existing oversight fee.

Tensions build with OSJs after LPL Financial's 'about face' on held-away RIA assets and forced use of its corporate RIA

Can the Fort Mill, S.C. broker-dealer add 3,200 NPH advisors, make RIAs bend to its will and not break bad with giant partners?

September 6, 2017 — 12:09 AM by By Lisa Shidler

Brooke's Note: LPL Financial is doing the kinds of things to RIAs that might make an RIA publication go ballistic. The big IBD is raising fees and closing architecture for RIAs that choose to work with its OSJ affiliates going forward. But it's never just what ...

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