Top RIA-Friendly IBDsMar 18, 2014
The ascendency of the RIA model at the expense of the traditional brokerage is practically a given in this industry. But many independent broker/dealers are fighting back, allowing their reps to operate their own RIA and providing strong platforms for fee-based business.
Today, some 48 percent of an independent b/d advisor’s compensation comes from asset-based fees, up from 40.5 percent last year, according to WealthManagement.com’s latest Independent Broker/Dealer Report Card survey.
“It’s kind of ironic that the modern broker/dealer is a giant RIA,” says Philip Palaveev, founder of The Ensemble Practice LLC.
Overall, IBDs in the survey scored an 8.7 out of 10 for their ability to set up advisors’ own RIA, although some firms are more RIA-friendly than others. Here are the top five.