Financial advisors may choose to move to an independent registered advisory model for several reasons, including:
Increased independence:
Independent registered advisors have greater control over their business. Advisors can make decisions that are in the best interest of their clients without being constrained by the policies and procedures of a broker-dealer.
Ability to offer a broader range of services:
Independent registered advisors can offer their clients a more comprehensive range of services and investment options, including alternative investments and private placements, which may not be available through a broker-dealer.
Enhanced fee structure:
Independent registered advisors typically charge a fee based on assets under management, which can be more transparent and predictable than commissions-based compensation structures used by broker-dealers.
Improved client relationships:
Independent registered advisors can build stronger relationships by providing personalized service and tailored investment solutions that meet their needs.
Greater flexibility:
Independent registered advisors have more flexibility in marketing, branding, and business operations, which can help them differentiate themselves from competitors and build a unique brand.
Reduced conflicts of interest:
Independent registered advisors are held to a fiduciary standard, which requires them to act in the best interest of their clients. Being a Fiduciary can help reduce conflicts of interest and ensure that advisors provide unbiased advice.
