Independent advisors

With the rapid growth of the RIA industry, large wealth managers are increasingly finding ways to make money by supporting independent advisory practices.

A new Cerulli report finds that advisors who outsource investment management spend more time in direct dealings with clients.

LPL executives have said they're well on the way to retaining 90% of the client assets they're seeking to bring over from their recent purchase of Commonwealth. But advisor departures have ticked upward.

Scott Posner, who's in charge of advisor and institutional recruitment as LPL's business development head, on why LPL leads in advisor "capture" at a time when fewer teams are switching firms.

LPL CEO Rich Steinmeier said the firm is nearing its goals for retaining Commonwealth Financial Network's assets and advisors, freeing up internal recruiters to bring in advisors from other firms.

Industry compliance experts say there are few more complicated decisions than knowing when to leave a firm and start your own advisory practice. The government shutdown is making it worse.

Dynasty Financial Partners' investment bank joins Diamond Consultants to help departing teams vet transition options, whether that's joining another wirehouse, selling to an RIA aggregator or starting their own business.

Janney also adds teams from Morgan Stanley and UBS, while LPL Financial picks up advisors from Janney for its direct employee channel.

Though advisors keep heading for the door following the sale of Commonwealth, industry analysts believe LPL Financial can still hit its post-purchase goals for retaining assets and headcount.

The purchase comes as Creative Planning seeks to build out its expertise in managing retirement plans.

Francisco Gil tried to claim his status as an independent contractor entitled him to tax deductions for travel, meals and marketing expenses. The IRS and a federal judge said he was in fact an employee.

Golden State Wealth Management is just the latest large advisory team to exit UBS following changes the wirehouse made to its compensation policies.

Also this week, Raymond James picks another team from Commonwealth amid its purchase by LPL, and Cetera recruits from B. Riley Wealth Advisors.

A group of former Ameriprise brokers argue they had no say in a court agreement requiring them to hand over their cell phones and other devices to a third-party forensic examiner.

Advisor pay policies are often notoriously complicated affairs. LPL is seeking to simplify it all with a new AI offering that promises to bring "clarity and intelligence to every payout."

A proposed "model rule" would give state regulators laws they could adopt to bring their marketing regulations for investment advisors in line with the SEC's.

Valuation experts caution that advisors selling their businesses put too much weight on EBITDA multiples and overlook many factors that can reduce the value of a deal.

CEO Rich Steinmeier reiterated LPL's goal to retain 90% of Commonwealth's assets and headcount while listing reasons why advisors might think twice about leaving to start their own RIAs.

Patrick Funke & Associates' decision to join Commonwealth Financial Network suggests that despite its pending purchase by LPL, Commonwealth still appeals to advisors seeking a smaller setting.

Industry experts say there's theoretically no reason why firms can't keep getting bigger through recruiting deals. But a lack of good M&A prospects could make growth harder for LPL and other independent broker-dealers.