Waddell & Reed Tag

The Big Mistake That Leaves Advisors Open to Lawsuits

15:26 02 March in In the News by rafferty

February 28, 2022 By Jeff Berman, ThinkAdvisor After Hightower sued a breakaway advisor in December on accusations he broke an agreement protecting client information, advisors and other industry leaders criticized the firm for using what they deemed a wirehouse tactic. But in recent years, an increasing number of RIA firms have filed similar suits, legal experts told ThinkAdvisor. Across channels, too many advisors and brokers don’t read the terms of the contracts they sign or even know what the exact terms are when they join a firm, they said. One big mistake is that advisors “almost never” have a lawyer review a contract from a financial services firm before signing it, according to Brian Hamburger, CEO and president of MarketCounsel and chief counsel of the Hamburger Law Firm. Not Just for Wirehouses Anymore It used to be the wirehouses...

Why IBD’s Are Changing Their Recruiting Deals

14:53 11 February in In the News by rafferty

February 9, 2022 By Jeff Berman, ThinkAdvisor The shift that first LPL Financial and now Commonwealth Financial Network have made from production rates to asset levels when calculating transition assistance for recruited advisors makes sense based on the evolution of advisor books to an increased percentage of advisory assets, according to industry recruiters. The shift in strategy stands to also help IBDs trying to compete with RIA custodians and other IBDs for advisors, Louis Diamond, president of Diamond Consultants, said Monday. Similarly, Andy Tasnady, managing partner of Tasnady Associates, told ThinkAdvisor by email Monday that the moves by LPL and now Commonwealth “makes sense now that the retail investment world (and its revenues) are now fee-based rather than the older school transaction (trade) based.” After all, the “biggest revenue sources now are fees from managed...

LPL Expands Custodial Service for Fee-Only Advisors

16:21 17 June in In the News by rafferty

June 16, 2021 By Jeff Berman, ThinkAdvisor Although LPL Financial has been in the RIA custody business since 2008, the company is now expanding that offering and will position it as a concierge, “white-glove”-type service, according to Marc Cohen, executive vice president of LPL’s advisor business. To help communicate what it is offering, “we’re going to be expanding our marketing efforts,” he told ThinkAdvisor in a phone interview on Tuesday. “It’s imminent. We’re in the midst of that launch right now” and will be “participating in more events [and] placing advertising” for the custodial offering as part of that push, he said. Earlier this year, LPL hired a dedicated custodial sales team, he said. Up until now, LPL’s custodial business has been mainly focused on supporting the hybrid advisory business of its registered representatives. However,...