Raymond James has actually presented a brand-new Business Registered Financial investment Consultant design, targeted at fee-only consultants who do not wish to run their own RIA yet do not require the association with a broker/dealer. Under the brand-new design, consultants would affiliate with Raymond James’ current business RIA, Raymond James Financial Solutions Advisors, and drop their Series 7 license with the Financial Market Regulatory Authority, if they still have it. This would enable consultants to run as a fee-only fiduciary, without any commission company.
” There’s a tourist attraction now to be able to state, ‘I’m a fiduciary,’ and one manner in which they can do that is simply to be a full-on fiduciary and just do fee-based company,” stated Jodi Perry, president of Raymond James’ independent specialists department.
Perry stated the company has actually had 3 internal consultant practices transfer to this design up until now– dually signed up groups that chose to drop their FINRA licenses.
Raymond James currently has an offering for fee-only consultants with its RIA & & Custody Solutions Department, led by Greg Bruce. However that custodial offering targets folks with their own RIAs.
With this brand-new association design, fee-only consultants can unload the concerns associated with running business and come under Raymond James’ Type ADV. Raymond James will custody the properties, Perry stated.
” It’s a service for fee-based consultants who do not wish to handle their own signed up entity. It’s a method for them to achieve the very same thing, without handling that additional obligation and liability it requires to really begin and handle that entity,” she stated.
” It reduces their concerns significantly by simply tucking under theirs,” stated Jonathan Henschen, creator of the recruiting company Henschen & & Associates in Marine on St Croix, Minn. “It’s not just a lot more work, however a lot more liability on them to have their own RIA.”
Including the fee-only consultant under the business RIA of a conventional broker/dealer is a course numerous IBDs have actually taken Commonwealth, the biggest independently held IBD, revealed in 2018 a fee-only platform for consultants devoid of their Series 7 however who wish to still run with the assistance of the company. LPL likewise supports fee-only consultants within the walls of the biggest independent broker/dealer. Partly, it’s a transfer to keep properties on the platform as consultants themselves continue towards fee-based organizations and far from commissions.
” The other thing we’re seeing is that there are financial investment consultant agents under RIAs out there, who have an interest in moving and they have interest in Raymond James, state, however they do not wish to return and once again get re-licensed,” Perry stated.
Perry stated there’s another set of fee-only consultants– those showing up on retirement– who have an interest in this design since of Raymond James’ succession preparation assistance. She indicates the company’s Practice Exchange, a cloud-based tool powered by FindBob, that helps with intros in between potential purchasers and sellers.
” We’re offering all the tools and services and the wealth management succession preparation– whatever that Raymond James needs to use– to these consultants. It provides an extremely robust platform in which to do their company.”