Deals & People November 14, 2012

LPL Financial Adds Level Four Group

Level Four Group, an independent adviser group, has affiliated with the LPL Financial broker/dealer and hybrid registered investment advisory (RIA) platforms. 
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Level Four Group will utilize the LPL Financial RIA platform as its principal custodian through its independent RIA firm, Level Four Advisory Services LLC. As part of this move, Level Four, which has close to $1 billion in client assets, is transitioning approximately 50 licensed independent advisers.

The wealth management industry is going through a period of significant change, including the trend of financial advisers increasingly seeking independence and the growing movement, already dominant in many countries throughout the world, toward providing financial advice on a fee-for-service basis, said Jake Tomes, chief executive of Level Four.

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“We believe more of our advice will be priced on an hourly basis, on a project basis, or as part of a package of services,” Tomes said. “This shift also parallels a movement toward providing clients with a comprehensive suite of services, as in a family-office environment, wherein the client can receive not only wealth management but tax, estate planning, insurance and other financial consulting services.” 

Level Four has established systems that position the firm to grow in this new industry landscape, Tomes said. “Our transfer to LPL Financial will be instrumental in attracting talented independent advisers who share our vision for growth and who wish to advance their own practices to the next level,” he said. “Viewed within this context, LPL Financial, in our opinion, is simply the strongest independent broker/dealer.  Its tools and resources provide independent advisers with the quality support they need, while its powerful brand image is also a potent draw for its platform. At the same time, LPL Financial offers Level Four the flexibility we require to accommodate both our business model and the spectrum of independent adviser models that we support.”

“We are delighted to welcome a large, successful and sophisticated independent adviser group such as Level Four Group and its affiliated advisers to the LPL Financial broker/dealer and hybrid RIA platforms,” said Bill Morrissey, executive vice president of business development at LPL Financial. “We look forward to helping Level Four Group reinforce its position as an emerging industry leader, and align our resources around the firm’s unique business model within the advisory space.”

Level Four Group, in Plano, Texas, provides business development and operational support to accounting firms and financial professionals seeking to create a holistic financial services offering. More information is available at www.levelfourgroup.com.

LPL Financial LLC is an independent broker/dealer with headquarters in Boston; Charlotte, North Carolina; and San Diego, California; and a wholly owned subsidiary of LPL Financial Holdings Inc.

 

Products November 14, 2012

Focus Financial Unveils Planning Resource

 

Focus Financial Partners LLC launches industry-wide succession planning solution.

 

 

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A partnership of independent wealth management firms, Focus Financial Partners’ succession planning solution is aimed at independent registered investment advisers (RIAs).

Succession planning is one of the biggest challenges for the independent wealth management industry. Small and midsize advisers, in particular, have limited choices for succession planning, often exposing their clients and families to the risk of a business vanishing. Focus’ patent-pending succession solution is an integrated program with four components:

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A structured diagnostic of the transition readiness of the business known as FIRST (Focus Index of Readiness for Succession and Transition);

An agreement with a Focus partner firm to manage the business going forward once the principals decide to activate the succession process ;

An annual certification program to ensure that advisers keep their transition plan active and up to date; and

Access to capital from Focus to finance the transition under agreed-upon terms.

RIAs can align with the Focus partner firm with the most similar business model, client service philosophy and investment approach, and culture. The succession solution can be triggered at any time.

Fewer than 40% of RIAs have a formal succession plan in place, according to Rudy Adolf, founder and chief executive of Focus Financial Partners. “This offering enables advisers to continue serving clients with their entrepreneurial business models while partnering with like-minded Focus partner firms to ensure a smooth transition of their practices once they are ready to retire or in case of a life event,” Adolf said.

With the agreement, advisers can allay clients’ anxiety about receiving advice and care after the retirement of their current adviser. The expertise and capital from Focus combines into a viable solution, Adolf said. “We have always considered ourselves to be in the succession business as we consistently help our partners grow and prepare for the future through talent development, recruitment and strategic acquisitions. This offering is a natural extension of our range of succession solutions and allows us to fill a critical gap in the industry.”

Focus Financial Partners is an international partnership of independent, fiduciary wealth management firms with over $52 billion in assets.

More information is available on their website.

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