Joining an Independent Broker-Dealer Can Strengthen Financial Advisors’ Capabilities, Help to Improve Client Services by Eric Zeitlin

Gone are the days when large, institutional banks and wirehouses were the only ones with pockets deep enough to arm financial advisors with the tools needed to attract and retain wealthy clients. Today, independent brokers/dealers and registered investment advisories associated with independent wealth management firms have access to a wide array of customizable strategies and support functions that help them narrow their focus on doing what they do best: helping clients achieve their estate and financial goals.

Over the past decade, there has been a significant rise in the number of financial advisors who left wirehouses, taking clients’ assets with them to independent registered investment advisory firms and boutique wealth-management practices aligned with independent brokers/dealers. It is unknown whether this exodus is the result of advisors choosing to abandon the high-pressure, aggressive-sale-quota focus of the wirehouse environment or consumers’ growing distrust of institutional behemoths following the 2008 financial crisis and subsequent scandals.

While some RIAs choose to go out on their own and create an advisory firm from the ground up, they should consider all the time, resources and liabilities that come with establishing and managing a start-up firm. Instead, advisors and advisor teams should consider the benefits that they and their clients can yield when they join an existing independent wealth advisory firm.

Below are some benefits realized when advisors and their teams join independent wealth advisory firms.

Benefits to Advisors

• Ownership of the client relationships that they develop and nurture;
• Independence to be entrepreneurial rather than serving as contracted employees focused on firm profits and subject to sales and production quotas;
• Access to a comprehensive range of valuable resources, such as investment research, compliance and operational staff, as well as the estate- and tax-planning experience of a diverse team of advisors, all of which can help them expand their service offerings; and
• A built-in infrastructure, including office space, information technology, payroll and benefits services and marketing support, that allows them to focus their time and efforts on strengthening client relationships and delivering higher levels of client services.

Benefits to Clients

• Recommendations only for products and services that meet their best interests and further their unique financial needs and goals;
• A single point of contact to oversee the entirety of their estate plans and coordinate efforts with other advisors responsible for their financial health, including attorneys and accountants;
• A strategic and actionable plan to help achieve their unique and specific family, business and financial goals; and
• Accessibility to and responsiveness from advisors who care as much as they do about their goals;

To learn more about how broker independence can benefit you and help you improve the overall client experience, visit www.provwealth.com.

About the Author: Eric Zeitlin is managing director of Provenance Wealth Advisors (PWA), an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with PWA Securities, LLC. He can be reached at the firm’s Fort Lauderdale, Fla., office at (954) 712-8888 or info@provwealth.com.

 Provenance Wealth Advisors (PWA), 200 E. Las Olas Blvd., 19th Floor, Ft. Lauderdale, FL 33301 (954) 712-8888.

 Eric Zeitlin is a registered representative of and offers securities through PWA Securities, LLC, Member FINRA/SIPC.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Prior to making any investment decision, please consult with your financial advisor about your individual situation.

To learn more about Provenance Wealth Advisors financial planning services click here or contact us at info@provwealth.com

Posted on July 31, 2024