How Financial Advisors Can Go Independent — With Support

As investors’ needs and expectations evolve, so do financial advisors’ job descriptions. For wirehouse advisors, this means serving your existing clients while trying to expand your client base, grow your business, and keep up with changing regulations — without the benefits of a higher payout or the freedom to run your practice as you see fit.

No wonder so many W2 advisors are choosing to go independent. According to Kimberly Sanders, senior vice president of supported independence at LPL Financial, “By 2028, independent channels are expected to account for 42% of market share.”¹

This could be good news if you’re energized by the prospect of running your own firm and taking control of every aspect of your new business. But if the thought of adding the responsibilities of business ownership to your duties as a financial advisor seems a bit daunting, take heart. Supported independence could be the right solution for you.

Explore the top five reasons financial advisors choose independence.

Independent Advisor Support

With supported independence, you can focus on being an independent advisor — owning your book of business, keeping more of what you earn, and pursuing your vision of success — while experienced professionals provide the back-office, operations, compliance, technology, and practice management support you depend on. It takes many forms, including:

• Curated Solutions: Leverage a platform that brings together core operations, service, technology, investments, and trading with the option of adding support when and where you choose.
• Regional Network or Branch: Own and operate your practice as part of a community that shares helpful guidance, implementable strategies, and best practices.
• Customized Support: Receive tailored guidance and mentoring, hands-on execution, and premium support to help optimize your time and advance your business.
• Employee Advisor: Gain the benefits of independence while outsourcing things like securing an office location, technology, administrative tasks, financial advisor operational support, marketing, benefits, and payroll.

Due Diligence Considerations

As you begin searching for a new strategic partnership, a good place to start is by making a list of the business tasks or functions you most and least enjoy. Consider the following:

• Risk Management: It’s unlikely that we’ve seen the end of the complex regulatory landscape and market volatility. If you’re not ready to assume the risk of starting your own RIA and become your firm’s chief compliance officer, look for an independent broker-dealer or wealth management firm that can help with compliance oversight and risk management.
• Efficiency and Scalability: If you’re in growth mode, having the backing of a larger firm to help scale your practice and provide you access to capital can be a gamechanger. Independent firms offer varying levels of liquidity and capital, so spend some time matching your business growth goals to what’s available. Keep in mind that supported independence options often come with access to technology that can improve your efficiency and service delivery, which can be a significant advantage in a competitive market.
• Work-Life Balance: This is becoming increasingly important and can be a powerful differentiator in recruiting engagements. Does your current workload seem sustainable, or would you benefit from the administrative and operational support of supported independence?

Additionally, make sure the firms you consider have the expertise and resources to guide you through your entire business lifecycle, from startup resources to growth mode to succession planning and the ultimate sale of your practice.

Read Kimberly Sanders’ article “Independence Isn’t What it Used to Be”.

Supported Independence at LPL Financial

Wherever you find yourself on the spectrum of independence, from maximum support to maximum autonomy, we can help you find and customize the business structure best suited to your needs.

No matter how you do business at LPL, you’ll own your client relationships, choose the services and support you want, keep more of what you earn, operate under your distinct brand, be able to adjust the level of support you desire as your business evolves, and control your legacy and succession plan.

Learn more about LPL’s supported independence solutions:

• High-Net-Worth specialization: Private Wealth
• W2/Employee: Linsco by LPL Financial
• Growth-Oriented practice: Strategic Wealth