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50 moves, $82B in assets: The year in IBD recruiting

A busy year in recruiting reveals one of the biggest challenges in the independent broker-dealer space: As RIAs and acquisitions drive the largest moves of advisors and assets, how can the sector support both independence and ties to BDs at the same time?

Recruiters in the IBD sector are increasingly consumed by the question of how to keep large hybrid RIAs, even though their outside advisory assets cut into revenue. Another important factor they grapple with: The need to retain as many productive teams as possible following an acquisition.

Together, the 50 biggest moves in 2018 span thousands of advisors and more than $82.5 billion in client brokerage and advisory assets under management.

Two of the sector's largest firms embody the two trends and firms’ responses to the issues. LPL Financial and Advisor Group grabbed the largest number of teams or offices of supervisory jurisdiction, with a combined 32 of the top 50 moves in 2018.

Five hybrid RIA practices who left LPL after the company unveiled new corporate RIA requirements for incoming advisors this year also made the list. In fact, the upcoming exit in April by Bill Hamm’s Independent Financial Partners appears likely to be the largest move of 2019.

LPL later scaled back the RIA policy, with CEO Dan Arnold calling the decision a “no-brainer” in light of its impact on the hybrid platform. Since other prominent firms also lost big hybrid RIAs in 2018, it's clear that they're still trying to figure out the best approach to the large enterprises.

In a sign of the threat from the RIA channel, eight moves involved so-called friendly BDs who only service the portion of the OSJ and practice assets on the brokerage side. Platform providers and RIA consolidators are allowing wirehouse breakaways to bypass traditional IBDs.

The eight moves to friendly, hybrid-serving BDs like Mutual Securities, Purshe Kaplan Sterling Investments and Private Client Services plus two new fully independent RIAs add up to $18.5 billion in client assets held away from larger, established firms.

One such powerful incumbent, Advisor Group, rendered the issue partly moot by boosting scale with three acquisition deals. The M&A activity could grow the 5,000-advisor network by some 2,500 more representatives early next year, upon its completion of the Questar Capital agreement.

Former Signator Investors OSJs made the list in droves by joining the Advisor Group’s largest subsidiary IBD, Royal Alliance Associates, after it purchased Signator from John Hancock and Manulife. However, the network will need to demonstrate value to retain them.

The Signator deal led to 22 of the largest moves of 2018, spanning $45.3 billion in client assets among Royal Alliance’s incoming crop of 1,860 ex-Signator advisors. Similarly, LPL’s acquisition of the assets of National Planning Holdings showed up frequently on last year’s list.

Seven other ex-NPH teams made this year’s edition, with LPL retaining six bank-based practices from Invest Financial and a mid-size firm, Independent Financial Group, taking the other. LPL made 10 of the largest grabs, adding advisors with $11.8 billion in total client assets.

However, this list would look much different without including teams joining new firms after an acquisition or those using friendly BDs for the brokerage sliver of their assets. Note, some IBDs also don’t announce their largest recruiting moves.

The list only includes teams that changed BD affiliations in this calendar year, according to FINRA BrokerCheck. Scroll through to o see the biggest moves in the ever-changing IBD sector for 2018.

Beltz Ianni & Associates

Location: Rochester, New York
Left: Cadaret, Grant
Joined: LPL Financial
Total client assets: $500 million
William Verhagen Commonwealth

Innovative Financial Solutions

Location: Bloomington, Indiana, and Palm Coast, Florida
Left: MML Investors Services (MassMutual)
Joined: Commonwealth Financial Network
Total client assets: $500 million

Stofan, Agazzi Investments

Location: Joliet, Illinois
Left: Wintrust Investments
Joined: LPL Financial
Total client assets: $509 million

Bethpage Federal Credit Union

Location: Bethpage, New York
Left: Invest Financial
Joined: LPL Financial
Total client assets: $516 million

Rockgate Financial Partners

Location: Oklahoma City/Dallas
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $547 million
Raymond James' independent division 5 advisors Georgia - July 31 2018

Broadway Financial Group

Location: Roswell, Georgia
Left: Wells Fargo Advisors
Joined: Raymond James Financial Services
Total client assets: $550 million
Revenue at Royal Alliance and Signator Investors

GFA Financial Group

Location: Tampa, Florida
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $564 million
LPL head count Q3 2018

Members 1st Federal Credit Union

Location: Mechanicsburg, Pennsylvania
Left: Invest Financial
Joined: LPL Financial
Total client assets: $571 million

Zahorik Financial

Location: Swisher, Iowa
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $600 million

The Price Group

Location: Houston
Left: RBC
Joined: Steward Partners (Raymond James)
Total client assets: $600 million
fee-based AUM

Canopy Wealth Management

Location: Middleton, Wisconsin/Southfield, Michigan
Left: Northwestern Mutual
Joined: none; independent RIA
Total client assets: $600 million
Paradigm Financial Partners

Paradigm Financial Partners

Location: Westport, Connecticut
Left: Kestra Financial
Joined: BD affiliation with Purshe Kaplan Sterling Investments
Total client assets: $600 million
David O’Donnell, Patriot Financial Group

Patriot Financial Group

Location: Westborough, Massachusetts
Left: LPL Financial
Joined: Securities America (Ladenburg Thalmann)
Total client assets: $650 million

Bala Financial Group

Location: Devon, Pennsylvania/Cherry Hill, New Jersey
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $655 million

Landsberg Bennett Private Wealth

Location: Punta Gorda, Florida
Left: Wells Fargo Advisors Financial Network
Joined: none; independent RIA
Total client assets: $675 million
IAG.TOS.Top5IBDs.792018.png

Integrated Equity Management

Location: Bloomington, Minnesota
Left: Securian Financial Services
Joined: Commonwealth Financial Network
Total client assets: $700 million
Ladenburg Thalmann IBD Network

Pinnacle Private Wealth

Location: Woburn, Massachusetts
Left: LPL Financial
Joined: Triad Advisors (Ladenburg Thalmann)
Total client assets: $750 million
LPL recruited assets Q3 2018

Logix Federal Credit Union

Location: Burbank, California
Left: Invest Financial
Joined: LPL Financial
Total client assets: $760 million

Capitol Financial Solutions

Location: Raleigh, North Carolina
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $767 million

Pasadena Private Wealth

Location: Pasadena, California
Left: Merrill Lynch
Joined: Focus Financial Partners; BD affiliation with Purshe Kaplan Sterling Investments
Total client assets: $800 million
Mark Cortazzo pole vaulting

Macro Consulting Group

Location: Parsippany, New Jersey
Left: LPL Financial
Joined: BD affiliation with Mutual Securities
Total client assets: $800 million

Seattle First Asset Management

Location: Seattle
Left: Signator Investors
Joined: LPL Financial
Total client assets: $800 million

Capital Resources and Insurance

Location: Huntington Beach, California
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $829 million
Stonebridge Financial Group, Triad Advisors

Stonebridge Financial Group

Location: Wormleysburg, Pennsylvania
Left: Wells Fargo Advisors Financial Network
Joined: Triad Advisors (Ladenburg Thalmann)
Total client assets: $850 million
Scarborough Capital Management

Scarborough Capital Management

Location: Annapolis, Maryland
Left: SII Investments (after LPL deal)
Joined: Independent Financial Group
Total client assets: $875 million

Independence Financial Partners

Location: Warwick, Rhode Island/Rocky Hill, Connecticut
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $948 million
Michael Henley Dynasty Merrill Lynch IAG

Wyeth Private Wealth

Location: Chadds Ford, Pennsylvania
Left: Merrill Lynch
Joined: Dynasty Financial Partners RIA platform; BD affiliation with Purshe Kaplan Sterling Investments
Total client assets: $1 billion
: A former Merrill Lynch team left the firm to found an independent practice, Sound View Wealth Advisors. From left to right: Lydia Moore, Eddie Ambrose, Emerson Ham III, Kelly Bouchillon and Melissa Bouchillon.

Sound View Wealth Advisors

Location: Savannah, Georgia
Left: Merrill Lynch
Joined: Focus Financial Partners; BD affiliation with Purshe Kaplan Sterling Investments
Total client assets: $1 billion

Financial Achievement Services

Location: Greenville, Ohio
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $1.03 billion

Lighthouse Financial Network

Location: Melville, New York
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $1.05 billion
Fragasso Financial Advisors
Elliott Cramer Photography images of Fragasso Financial Advisors. Dan Dingus and Bob Fragasso
Elliott Cramer

Fragasso Financial Advisors

Location: Pittsburgh
Left: LPL Financial
Joined: BD affiliation with Private Client Services
Total client assets: $1.3 billion

Marketshare Financial

Location: Carmel, Indiana
Left: Signator Investors
Joined: Royal Alliance Associates
Total client assets: $1.4 billion

Johnson Wealth

Location: Racine, Wisconsin
Left: Invest Financial
Joined: LPL Financial
Total client assets: $1.4 billion

Acorn Financial Services

Location: Livingston, New Jersey
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $1.7 billion
RFG Advisory

RFG Advisory

Location: Birmingham, Alabama
Left: LPL Financial
Joined: BD affiliation with Private Client Services
Total client assets: $1.7 billion

Signature Financial Solutions

Location: Boca Raton, Florida
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $1.7 billion

Community Investment Services

Location: Canton, New York
Left: Invest Financial
Joined: LPL Financial
Total client assets: $1.85 billion

Centinel Financial Group

Location: Needham Heights, Massachusetts
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $1.9 billion

Central Trust Bank

Location: Jefferson City, Missouri
Left: Invest Financial
Joined: LPL Financial
Total client assets: $2.2 billion
Cambridge 2017 revenue

Jordan Creek Financial Solutions

Location: West Des Moines, Iowa
Left: Broker Dealer Financial Services
Joined: Cambridge Investment Research
Total client assets: $2.2 billion

Michigan Financial Companies

Location: Southfield, Michigan
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $2.4 billion

Pacific Financial Partners

Location: Lafayette, California
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $2.5 billion

Signature Financial Group

Location: Columbus, Ohio
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $2.6 billion

Collective Financial Group

Location: Rochester, Minnesota
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $2.6 billion

Boston Partners

Location: Andover, Massachusetts
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $2.7 billion

Exemplar Financial Network

Location: Crystal Lake, Illinois
Left: Cetera Advisor Networks
Joined: LPL Financial
Total client assets: $2.7 billion

VantagePointe Financial Group

Location: Grand Rapids, Michigan
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $2.9 billion

Keystone Financial Management

Location: Allentown, Pennsylvania
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $3.1 billion

Edgewood Financial Network & Innovative Financial Group

Location: Gold River, California/Nashville, Tennessee
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $3.6 billion

Signature Estate & Investment Advisors

Location: Los Angeles
Left: Signator Investors
Joined: Royal Alliance Associates (Advisor Group)
Total client assets: $9 billion
Glenn Spencer, Prime Capital

Prime Capital Investment Advisors

Location: Overland Park, Kansas
Left: Cambridge Investment Research
Joined: BD affiliation with Private Client Services
Total client assets: $10 billion
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