The independent fiduciary model is more attractive to wealthier advisory clients than the wire house prototype, according to executives of investment advisory firms registered in Dynasty financial partners‘ network.
After all, the independent model aligns with the interests of high net worth and ultra-HNW clients, according to Gordon ross, director of the Dynasty group of companies. The Ross and Dynasty relationship management team is responsible for the ongoing partnerships with network advisors.
“If you think about what bigger customers want, it’s normally around more flexibility, more customization, and having a range of resources available to you. This naturally lends itself more to the independent world, ”he said.
Clear and simple
Chuck cooper, managing partner at Wealth Safe, a Lee’s Summit, Missouri-based RIA company in the Dynasty network, said their team knew their ability to work with high net worth clients “would be best made possible by our independence, outright.”
High net worth clients “typically have more complex needs” for tax and income sequencing as well as risk mitigation, for example, according to Cooper. As an independent business, StrongBox can better meet these needs when building and managing portfolios on their behalf, he says.
Cooper speaks from experience. He worked for 26 years in wiring companies and brokers before founding StrongBox in August 2019. He started in the industry in 1993, when he registered with Edward jones, then moved to AG Edwards & Fils in 1997, then was registered with Wells Fargo Compensation Services in 2003 until August of last year, according to his BrokerCheck save.
StrongBox’s existing HNW clients, who were with the advisors before the company was formed, have grown their core assets with the company by nearly 25% in the two years since the company was formed, according to Cooper. This is in the form of cash / securities transferred to existing accounts or by creating new accounts within the same household, he says.
Cooper says that on average, StrongBox’s existing ultra-HNW customers more than doubled their core assets with the company over the same two-year period.
StrongBox has 325 client households with approximately $ 356 million in assets, according to Cooper. Almost half of those assets, or 48%, are owned by HNW customers, Cooper says.
Wealthy clients are also drawn to the freelance model because they perceive it to be conflict-free, says Matt Liebman, Founding Partner and Managing Director of Blue Bell, PA-based RIA Amplius Wealth Advisors, which is also part of the Dynasty network.
“While we have always believed that we put the best interests of the customer first, this business model, with its absence of conflicts – or much less, at least – only appeals to people,” he said. he declares.
Liebman was registered with wirehouses for 16 years before Amplius launched in February 2021. He was at UBS from 2000 to 2004 then to Merrill Lynch from 2008 to March of this year, according to its BrokerCheck file.
Members of his core team at Amplius were previously registered with Merrill Lynch, according to their BrokerCheck records. This includes the founding partner and president of Amplius Samuel Liebman, the father of Matthew; founding partner and director of strategy Marks of Aaron and vice-president of wealth planning Patrick swift.
Young Liebman says Amplius has onboarded 10 new HNW families as customers, which is almost all of the new customers the company has onboarded since its launch. The company also has up to 10 other active referrals from HNW customers still in the prospecting phase, he says.
Prior to the launch of Amplius, the team focused on their stronger customer relationships which “tend to be a bit broader,” and those customers introduced the company to larger HNW prospects, according to Liebman.
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