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.


John Straus: Other broker-dealers are not experienced in dealing with a wealthy complex client.

Raymond James looks to extend its RIA roll-up success with FallLine deal that gets John Straus off the start-up schneid

The St. Petersburg, Fla.-based broker-dealer connected with Steward and this time it gets play at making gains in two weak areas -- serving RIAs and ultra high net worth investors

July 13, 2017 — 9:04 PM UTC by Janice Kirkel

Brooke's Note: That old Michael Jordan aphorism about how it's not about how you start but how you finish comes to mind here. Not that John Straus had a bad start to his career. He rose high at UBS. But he's been battling for ...

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Jim O'Shaughnessy: LPL will allow us to give recommendations but you've got to make sure you're fully working in the RIA with compliance, supervision and that product recommendations are all under that umbrella.

LPL Financial's DOL-rule memo to reps implies deeper message: Become an RIA or stand down on giving rollover advice

The 'deep-pocketed' broker-dealer puts its Series-7 brokers on notice to forget about suggesting a rollover even as it gives its hybrid RIAs a strict protocol to stay out of trouble

July 5, 2017 — 8:02 PM UTC by Lisa Shidler

Brooke's Note: What LPL Financial does as the biggest IBD with a whole staff of compliance experts and an even bigger bench of outside attorneys and other consultants must not be considered casual in its intent. We took it seriously. Clamping down is always ...

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Louis Diamond: It’s a black eye to the new CEO, especially with all the rumors of a sale.

LPL fires $10 billion RIA in Kansas City with both parties happy to keep the rift's cause out of view

With fiduciary rules, the economics of RIA custody and LPL fresh off a CEO departure, Resources Investment Advisors Inc. with $4 billion of its own and $6 billion of affiliated assets, declines to say if it's found a new home

February 3, 2017 — 7:17 PM UTC by Janice Kirkel

Just months after  LPL Financial got its walking papers from a $2.2-billion AUA hybrid, the Boston-based IBD has fired a $10-billion firm under circumstances shrouded in mystery.

The firm, Resources Investment Advisors Inc. of Overland Park, Kan., has $4.1 billion in AUA and a network ...

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Matt Sonnen: Ron said to me and is on record as saying that the brokerage business, that’s Cetera, is just an accommodation for clients.

The real Ron Carson story is that most assets went to Fidelity and TD Ameritrade where technology allows him to execute his vision

The big talk was the lateral move of some assets to Cetera but it was more a smokescreen for a breakaway

January 27, 2017 — 6:51 PM UTC by Janice Kirkel

Brooke's Note: It's almost a rule of law that once your advised assets get measured in the billions of dollars, you stay at your custodian. "Re-papering" is simply too big a hassle and opens too many cans of worms. On the rare occasions ...

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Steve Chipman: Advisor Group has the financial resources, products and services and long-term vision to help broker-dealers and RIAs thrive during what we are calling the fiduciary era.

While Advisor Group's high-powered organic growth strategy unfurls, Valerie Brown unleashes Steve Chipman to do the inorganic wet work of rolling up IBD orphans and maybe even some RIAs

Poached from Foothill Securities, Chipman cites his former employer as the reason he can talk the talk of his quarry -- smaller firm execs seeking a port in a fiduciary storm

January 25, 2017 — 3:53 PM UTC by Sarah O’Brien

On Jan. 10, RIABiz described one of the more ambitious efforts in the independent advisory arena seen in years -- one in which Advisor Group slashed its own revenues by slashing prices. Why Valerie Brown is doing 19-whistlestop tour with her new CEO to sell -- ironically -- deep price ...

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John Clendening: The simplest way to satisfy the new DOL rule is to appropriately have clients in fee-based advisory relationships.

How a Schwabian picture is emerging as Bob Oros joins John Clendening as chief of 4,500 underachieving HD Vest reps

Ex-Schwab retail chief Clendening makes the ex-Fido RIA chief his new CEO -- with ambitious plans in an atmosphere of revenue-sharing, variable annuities and commission sales

January 24, 2017 — 12:17 AM UTC by Brooke Southall

Brooke's Note: The HD Vest pieces are starting to fall into place. When you take a step back you see two Schwab veterans joining forces at the peaks of their careers, taking a measured risk to bring two decidedly non-fiduciary broker-dealers into the modern era of ...

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Peter Mallouk owns a $21-billion RIA already growing with organic ferocity. Then Tony Robbins shows up and whoosh.

The 10 RIABiz stories advisors connected with most deeply in 2016 and how hubris and humility ran amok in this didn't-see-it-coming year

How did Aequitas swamp CONCERT? Power outages at LPL, Cetera and Wealthfront? Adolescent robo problems? And was that Tony Robbins hawking his money book ... again?

December 28, 2016 — 5:54 PM UTC by Dina Hampton

Brooke's Note: Choosing which articles were of greatest interest to RIABiz readers in 2016 was easy because a Google robot  measures the final results of your reading output.  We then refresh your human memory about why the story was so irrestistible at the time. Big ...

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Paul Saganey: We didn’t even discuss the prospects for a sale in our talks.

How a $4-billion OSJ jumped ship from Lincoln Financial to LPL just before the Mark Casady step-down in search of safe harbor in the eye of DOL-rule storm

Lincoln wins in that Integrated Financial Partners still gorges on its products but CEO Paul Saganey likes the better control over fees under LPL

December 12, 2016 — 7:47 PM UTC by Janice Kirkel

Brooke's Note: The major difference between OSJs and IBD rep firms is that OSJs typically shoulder far heavier compliance burdens. That makes OSJs more of the canary in the DOL-mine as regulations and ebb and flow. That may help explain why a $4-billion OSJ is ...

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Dan Arnold: As an entrepreneur at heart, I am constantly inspired and energized by the work of our advisors and institutions.

LPL takes selling off the table and takes out boisterous Mark Casady at CEO in favor of quiet Dan Arnold

The firm's future as an independent public company is assured for now but the abrupt shift in management style poses new questions

December 6, 2016 — 12:52 AM UTC by Brooke Southall

Brooke's Note: After all the questions about who would own LPL and who would lead it into 2017 and beyond, we have answers. But the reasons the original questions got asked sit there as pregnantly as ever. LPL has 14,000 relationships with advisor affiliates, including ...

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Citi's Bill Katz spoke out Thursday to quell rumors about Schwab buying LPL, but only with soft logic.

Why the LPL-Schwab merger rumor making the rounds makes more sense the harder you look

The Boston- and San Francisco-based companies each lead independent channels and redundancies are scarce

November 18, 2016 — 1:15 AM UTC by Brooke Southall

LPL Financial's shares leapt higher yet again Thursday to finish above $40, up from about $31 as recently as Nov. 3.

This time, it had Chuck to thank.

The Charles Schwab Corp. is the latest company rumored to be in the mix as a buyer ...

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Jamie Price: The opportunity to join a firm of this caliber was one that I could not pass up.

Valerie Brown finds her CEO in UBS ex-prez Jamie Price off the obvious radar screen

In search effort the Advisor Group executive chair looked past kiss of death on the Price résumé and saw the digression off the corporate path as a positive

November 16, 2016 — 12:17 AM UTC by Brooke Southall

Brooke's Note: After 2009, many Wall Street execs chose to leave permanently and join startups in other industries presuming it might be a final goodbye. Little did they know they were actually burnishing their credentials.

When Jamie Price decided to leave UBS, he oversaw 7,300 employees and ...

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Mark Casady: We're seeing banking institutions asking themselves: Should we retain our brokerage structure in the sense of owning our own broker-dealer?

LPL shares spike despite CFO downplay of buyout prospects as CEO Mark Casady reveals 'large programs' at banks are kicking LPL tires

DOL rule spurs banks that seek to ship broker-dealer business its way to counterbalance DOL downers

November 9, 2016 — 9:25 PM UTC by Janice Kirkel

Brooke's Note: This article was published Wednesday. Today, Thursday, LPL shares jumped an additional 4.52% to $37.48, a rise of $1.62. Clearly something has changed in the way people are viewing this company that goes beyond favorable signs relating to interest rates ...

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Rumors of the Boston-based IBD's acquisition by E*Trade could send LPL stock on a wild ride.

This time LPL share jump is traced to E*Trade

Critically late to the advice game and at loose ends after TD-Scottrade union, the New York-based discount broker has a lean and hungry look, according to Dealreporter

November 2, 2016 — 4:29 PM UTC by Janice Kirkel

Brooke's Note: This LPL-E*Trade floated combination sounds so crazy it might just make sense. It starts to make more sense when you consider that LPL's CFO, Matt Audette, came over last year from -- wait for it -- E*Trade. See: LPL poaches E*TRADE's ...

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Wayne Bloom: Are you going to sit around and hope? You can't do that.

Commonwealth Financial to dump commission business for IRA and 401(k) accounts

Overcoming a 'challenging decision culturally,' Wayne Bloom pulls the trigger ahead of IBD rivals for his Waltham, Mass.-based broker-dealer

October 24, 2016 — 10:47 PM UTC by Brooke Southall

This article was updated with the comments of Ameriprise CEO to show what the exact opposite DOL attitude looks like at a broker-dealer.

Brooke's Note: This news broke late yesterday so I wasn't able to reach Wayne Bloom, who will take credit or blame for his company's ...

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Doug Flynn: New management brings in its own coaches.

LPL Financial share price tumbles to pre-hostile bid levels in atmosphere of eerie calm

LPL reps shrug their shoulders over a possible sale and investors seem in no hurry to buy but experts say the B-D has what PE loves -- lousy growth but terrific cash flow

October 21, 2016 — 6:57 PM UTC by Janice Kirkel

In business, as in matters of the heart, it's not hatred that kills you, it's indifference.

And so with the potential sale of LPL Financial, possibly to Hellman & Friedman, which purchased a controlling stake in LPL in 2005 but has been fully cashed out since ...

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