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Author: rafferty

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Why a Silicon Valley Advisor Became an RIA

17:38 25 November in Articles Written by Jon Henschen by rafferty

November 24, 2020 By Jon Henschen, ThinkAdvisor There's a big difference between broker-dealer and RIA expenses, as one advisor with $100 million in assets and UHNW clients discovered. Recently, our firm worked with an advisor whose experience went against many of the narratives that broker-dealers promote. The process was illuminating, and this advisor invited me to share his story. A Silicon valley-based advisor, Palash Islam had a long-standing relationship at a mid-sized BD, which had brought value and relationships he enjoyed. He came to me seeking options when his firm was soon to be merged into a larger one. Early on in our conversation, I was upfront with the suggestion that Palash should establish his own RIA, as he had over $100 million of assets under management and only a small amount of residual trailing...

Why Broker-Dealer Forgivable Notes Aren’t (Really) Forgiven And Are Instead Ultimately Paid Back By Clients

18:01 23 November in Articles Written by Jon Henschen by rafferty

November 23, 2020 By Jon Henschen, guest post on Kitces.com The Emergence of Broker-Dealer ‘Recruiting Bonuses’ in the Form of Forgivable Notes Prior to the 1990s, broker-dealers that were recruiting new brokers typically would cover advisor transition expenses plus incidentals as a part of the deal. But as competition for attracting brokers heated up with the booming 1990s, some broker-dealers began to offer an upfront “bonus” for joining the firm… in the form of what was technically a loan to the broker, that would be forgiven (in essence, “earned”) over time by staying with the firm and/or hitting certain growth or retention metrics. However, the payment was technically a loan, as evidenced by a loan “note” that came due for repayment if the required metrics were not met… and thus simply became known...

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Robert Moore Returns to LPL as CEO of Private Advisor Group

16:41 19 November in In the News by rafferty

November 18, 2020 By Asia Martin, WealthManagement.com The move puts him on the other side of the table at the independent broker/dealer LPL Financial, where he served as president until 2015. Private Advisor Group, the registered investment advisor and office of supervisory jurisdiction affiliated with LPL, landed the seasoned wealth management executive Robert “RJ” Moore as its new top executive, according to an announcement the New Jersey–based RIA made Wednesday. Moore is the former president of LPL Financial and was, until 2019, chief executive officer of Cetera. John Hyland and Patrick Sullivan, the co-founders and managing directors of Private Advisor Group, said they and the rest of the leadership team will report to Moore, a first for a company that has struggled to formalize its executive leadership hierarchy throughout since the duo founded the firm 23 years ago. “John [Hyland] and I are...