In another sign that the breakaway broker movement is continuing at a high rate the number of companies that have signed the Broker Protocol climbed by 20 between mid-July and mid-August.

New companies on the list are typically either freshly minted RIAs, existing RIAs that are laying the groundwork to bring on wirehouse brokers or independent broker-dealers with the same mission.

Between November of 2008 and November of 2009, when RIABiz first began keeping track, the number of signatories jumped by 252, to 370 firms.

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Since November of last year, 206 firms have joined.

A broker who joins a firm that is a signatory can legally bring over clients if he or she carefully follows the Protocol. But, companies do face some risk by joining.

Just as it is a recruiting tool for smaller firms to use against the big wirehouses, competitors within the independent space may eventually begin using it against each other.

Full list

Along with the list of signatories, RIABiz is now publishing the legal document that is the protocol. To see the link to the list, go to “the home page of our directory, www.riabiz.com/d or click here.

As RIABiz reported in March, the Securities Industry and Financial Markets Association has taken over administration of the list. For instructions on how to join the Broker Protocol, see this story: SIFMA will take over administration of Broker Protocol list.

Some companies are joining the list not because they immediately plan to add wirehouse brokers, but as part of establishing the framework for their businesses.

That’s the case for The ETF Store of Kansas City, Missouri.

Joseph Massman, an executive with a background in startup (technology) companies, founded the fee-based RIA a year ago, and hopes to bring advisors onto his platform, and eventually, to franchise. So far, he and a team of three manage $11 million using a wide array of model ETF portfolios. The ETF store custodies his assets with Schwab and TD Ameritrade.

The ETF Store?

The ETF Store is located in the same city as the headquarters of The Mutual Fund Store, the successful franchisor owned by Adam Bold.

Asked why he chose that name, given the inevitable association with The Mutual Fund Store, he said, “I don’t want to portray this as an assault on them … we will compete with them. We will compete with others, too.”

“We think we have a better product and a cheaper product.”

Adam Bold of the Mutual Fund Store declined to comment. Previously, he published his thoughts on ETFs in this column: How ETFs have been oversold when it comes to flexibility, lower costs and tax efficiency.

The new signatories to the Broker Protocol include:

  • TWM Group LLC d/b/a Tower Financial
  • B.C. Ziegler and Company
  • Retirement Wealth Strategies, LLC
  • Pure Wealth Management, Inc.
  • Capital Management Partners, LLC
  • Arsenal Investment Advisors, LLC
  • Grand Strategy Capital LLC
  • LTC Financial Services, Ltd.
  • The Driscoll Group Inc.
  • Cascade Financial Management Inc.
  • Thomas Investment Management
  • Nova Financial LLC
  • Signature Estate and Investment Advisors, LLC (“SEIA”)
  • Investment Partners Of Acadiana
  • Landvik Financial
  • Cambridge Wealth Management, LLC
  • Nationwide Planning Associates, Inc.
  • NPA Financial Services, Inc
  • Questis Advisor Partners, LLC
  • Sanner Financial Services
  • The ETF Store, Inc.

Click here for full list.

This story was modified on Aug. 19th to correct a reference to The Mutual Fund Store.