How Proprietary Advisory Platforms Conflict With Fiduciary Standards
September 21, 2021 By Jon Henschen, ThinkAdvisor What You Need to Know Broker-dealer corporate RIAs are seeking to recruit advisors who will bring large amounts of assets to their proprietary platforms. The conflict-of-interest standards for promoting products like mutual funds don't seem to apply to advisory platforms. To keep assets flowing to their best profit centers, some BDs are keeping their advisors in the dark on better offerings. Broker-dealer corporate RIAs have jumped on the proprietary advisory platform bandwagon at a rapid clip over the last five years. We’ve been approached by broker-dealers wanting us to recruit advisors to their broker-dealer with a focus on bringing advisors to them, not only with a large percentage of advisory assets but assets that will specifically go into their proprietary advisory platform. Financial products such as mutual...