I also said it was a joint venture (correcting myself - with proof no less!) and the point was the same meaning - that BofA has never, not one time, integrated anything but a retail bank successfully into its fold. Read the whole thing before you flame. If you are a big BofA supporter, hats off to you! They still are a hideous firm (BAI that is) and their results prove the point. They went from 2,800 FA’s to less than 2,000 in the past three years. It wasn’t due to “attrition”. Their top producers are leaving in droves. The bankers cannot get along in the sand box any longer and it is back to the old broken silo system.



But maybe you are (or were) one of those Sears guys who loved to say they were from Morgan Stanley even though you worked at Dean Witter for 20 years. Embarrassing, if you ask me, to not admit who your mama is. In fairness, I started at ML, went to BofA for 3 years, did very well and got sick of the Walmart that is BofA. I have since returned to the wirehouse, although not ML. My post was simply musing about the indy route and my own misgivings. I am looking for clarifications from professionals that are indies. My own small town experiences are what they are so I wanted to ask the group. I also said that there are a couple (2) boutique shops that are sharp. The others are shops that I take great pleasure in moving their clients to a more professional and caring advisor.



In the words of Michael Corleon, “It was Roth!”

Good post, bancofamigo.  A couple of points for you on your indy observations.

Most of the Indies in my town are slamming Par Life insurance and A shares from whomever is paying the highest Y-T-B.

Even assuming that there is something inherently wrong with what these indys you describe are recommending (which is just an assumption), that should hardly be an indictment on independents as a business model.  Otherwise the similar existance of FAs at wires who make questionnable recommendations would mean wirehouses as a whole are bad.  Distinguish between the business model and the practioner.  You have to have knowledge and ethics wherever you are, independent or wire or anywhere in between. 

How do you deal with the liability involved in what we do (I am also a CFP) without having a strong guard behind you?
The same way all firms do - establish prudent control policies and procedures and purchase E&O insurance. 

The RIA has to do his brochure thing then no one is checking behind him.
Obviously at least one person at a firm has to be up on
these matters (CCO) just as anywhere, but there are plenty of comliance vendors available to help you set
this up right.  You don’t have to be a compliance guru going into it.  More importantly you should realize that compliance
as an RIA under the SEC/state is way easier than what you know as a rep in a b/d under the gestapo FINRA.  Different planet.

Beyond that as an independent RIA you are indeed ultimately responsible for your own actions, and like all business owners the buck stops with you, with all the potential benefits and demands that entails.  If that is a net negative to you, I would agree it is not the right business model for you.

I considered the Indy route but was too chicken.
No problem.  It’s not for everybody.  At least you are honest enough to recognize this as the core reason rather than making rationalizations like the typical  “all the indys in my town are scumbags” or “they’re all pikers who couldn’t make it at the wires” stuff too often thrown out.