Paradigm Wealth Management, an independent financial advisory firm with approximately $305 million in client assets, is joining the LPL Financial platform.
Based in Bridgewater, N.J., Paradigm specializes in retirement income planning and serves a significant client base of professional athletes. Paradigm declined to comment on the type of sports their athlete clients are involved in.
As of March 31, 2016, the company's business consists of both commission and fee-based services.
"We felt that LPL understood our distinct business model and how we envision building our business for the future," Paradigm founder David Giegerich said in a statement.
Together with David Provinsal, Giegerich founded Paradigm in 2010. According to FINRA BrokerCheck records, Giegerich started his career in 1996 with 1717 Capital Management. His 20-year career includes stints at Prudential Investment Management, Genworth Financial and MetLife Securities.
Provinsal started his career in 1998 at Copeland Equities, according to BrokerCheck records. He has previously worked from MetLife Securities, Metropolitan Life and AIG SunAmerica.
Besides Giegerich and Provinsal, Paradigm has six other financial planners.
LPL COMMISSION REVENUES DROPPED
LPL's commission revenues slumped in the first quarter ending March 31, dropping 17% from a year ago to $437 million. The nation's largest IBD attributed the decrease to lower sales and trading commissions, which declined due to lower average assets levels.
In a conference call with analysts, LPL CEO Mark Casady said that "improvements" in the Department of Labor's fiduciary rule will make implementation costs "more manageable."
Since the unveiling of the fiduciary rule last month, LPL announced that they will be partnering with FutureAdvisor, Blackrock's robo platform, instead of developing their own in-house digital advice platform.
Read more: BlackRock's robo adds LPL to client roster
The lower-cost business model of robo advisors is expected to benefit from the fiduciary rule.
Paradigm was not immediately available to comment on the fiduciary ruling and its impact on their decision to join LPL.