Upstart IBD’s headcount is up 24%, production up 60% since launch
June 15, 2021
By Tobias Salinger, Financial Planning
The founders of an upstart firm that launched a broker-dealer two years ago say the company is growing again and saving advisors and clients millions of dollars.
The week Independent Financial Partners officially changed from one of LPL Financial’s largest offices of supervisory jurisdiction to a midsize IBD competitor of the giant wealth manager, the Tampa, Florida-based firm faced its first SEC audit in 20 years, CEO Bill Hamm and his son, COO Chris Hamm, said in an interview. The pair admit that there are “probably a few more moving parts” to launching an IBD than they thought, as the younger Hamm puts it…
Not charging a fee for advisors who manage assets on their own makes IFP stand out to recruiter Jon Henschen, who notes an emerging trend of “fiduciary-friendly” BDs focusing on advisory services without markups, platform fees and other kinds of costs. However, compliance expenses usually make it difficult for smaller BDs to earn much profit, he points out.
“That’s been my focus in my recruiting — helping advisors find places that treat their clients’ money better,” he says. “Advisors will see other broker-dealers where their clients’ money is treated better, so that makes it more attractive to go there.”
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