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.


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 UTC 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 ...

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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 UTC 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 ...

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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 UTC 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 ...

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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 UTC 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 ...

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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 UTC 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.  ...

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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 UTC 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 ...

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Matthew Borden: When it goes to the jury it’s gonna be plain to see through what the bank is doing .... Meanwhile my clients are [n]ot cowering from the bank and not shirking their duties to their clients.

Silicon Valley $300-million RIA strikes back at $30-trillion BNY Mellon with act of counter-intimidation

Lyell Wealth's response in the Atherton Lane case discloses dirty laundry list of allegations including blatant cross-selling, bullying ex-Atherton advisors out the door and retaliation against clients considering following them

August 10, 2017 — 4:23 PM UTC by Janice Kirkel

Brooke's Note: Here's a hell of an interesting case involving four advisors breaking away from an RIA -- Atherton Lane -- to form their own firm, Lyell. The twist is that the RIA it left had just been purchased by BNY Mellon -- and here they are being sued ...

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Greg Fink: We went through a process at Fidelity to make sure Triad and parent owner [Ladenburg Thalmann] was OK with us breaking away.

Three advisors in Atlanta break away with $1.8 billion and make seven-year Fidelity relationship manager their CEO -- whose duties now include managing a lawsuit from former IBD

ACG Wealth replaced Triad with their own broker-dealer and allegedly depended on a verbal assurance that may be tested in court

July 27, 2017 — 11:41 PM UTC by Janice Kirkel

Brooke's Note: The RIA model is so powerful that sometimes it seems to make all things possible -- like taking all the parts you liked from your old life to your new life and leaving the parts you disliked behind. And if you like none ...

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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 startup 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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