Start Your Own Hybrid Firm
Are you considering starting a registered investment advisor (RIA) firm, but still want to retain your existing book of business and current commission revenue? Consider a "hybrid" business model, with both fee- and commission-based revenue sources.
Over a quarter of all firms across the country–representing a total of $716 billion in assets under management–are advisors registered as representatives of a broker-dealer. This "hybrid" arrangement allows you to continue offering commission-based services and collect trail commissions. At the same time, you can take advantage of the benefits of a fee-based advisory model, including a more predictable, asset-based revenue source and a broader offering to meet changing investor demands.
The potential is substantial. Hybrid firms generate $6.3 billion in annual revenue, hold 28% of all retail RIA assets, and service 40% of all financial planning clients.
A Blended Structure
A hybrid firm combines several features of fee- and commission-based models. The firm maintains its own independent structure and controls the contractual relationship with the client. Investment advisory services must be provided by a qualified, federally-registered RIA–either the firm's sole proprietor, or by employees or independent contractors who are qualified as Investment Advisor Representatives (Series 65 registration). At the same time, the broker-dealer retains regulatory and compliance oversight of the advisory business.
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Pershing Advisor Solutions
Pershing Advisor Solutions is dedicated to helping you make a rapid and informed career transition. Our industry knowledge and resources can help you make a smooth transition to independent practice.
