RIAs

In the ongoing consolidation of the independent B-D space, insurer AIG's acquisition of Woodbury Financial Services brings the smaller firm in from the cold where it has become increasingly challenging to survive without a larger parent company.

Financial professionals who hold a certified financial planner (CFP) certification can expect to generate more revenue and enjoy higher levels of client satisfaction than their counterparts without the designation, a new study has found.

LPL Financial reported second quarter net income of $39.5 million, down $6 million compared to $45.5 million in the same quarter of 2011. Net revenues for the second quarter of 2012 increased 1.5% to $907 million, from $894.0 million in the prior year period.

Schwab Advisor Services says fewer RIA mergers and acquisitions took place in the first half of 2012 compared to the same period last year, but the average assets under management acquired in those transactions jumped dramatically.

Evercore Partners Inc., the advisory firm founded by former U.S. Deputy Treasury Secretary Roger Altman, said second-quarter profit rose 19% as investment-banking revenue climbed.

Industry veteran John Sullivan is joining Dynasty Financial Services as senior vice president, RIA and Transition Services.

If a potential breakaway broker of a larger firm were to sit down and think of all the negative considerations in starting his own RIA firm, it would be hard to imagine that any sensible person would venture into that type of quagmire. However, with all these potential risks facing a prospective breakaway broker, there exists an opportunity for the established RIA firm.

In a study of 1,025 independent RIAs, Schwab found that a client retention level of 97% helped to drive client referrals and to produce record levels of AUM and revenues last year.

Eugene M. Lerner has spent his six-decade career in the financial services industry trying to stay ahead of the curve. His decision to leave Morgan Stanley for HighTower speaks to where he thinks the industry is heading in the near future.

Fusion offers practice management and business consulting to independent financial advisors. NFP hopes the deal will increase its margins by next year.