As Bill Hamm’s Independent Financial Partners prepares to
IFP is developing its own digital platform for advisors dubbed Advisor[x], rolling out its own Facebook and Google-like tools and integrating three software systems for the new IBD slated for opening in 2019, according to Chris Hamm, the firm’s COO and Bill’s son.
The Tampa, Florida-based firm represents one of LPL’s largest hybrid RIAs and offices of supervisory jurisdiction, with about $10 billion in assets under management and more than 520 advisors. Some of those advisors, however, have since defected to other major OSJ enterprises at LPL. When the elder Hamm announced in April that IFP would form a new IBD, that news triggered
Now, Bill Hamm says IFP has also been recruiting in a major way with practices outside LPL, to the tune of some $22 million in annual production. And, just like a former Triad Advisors practice which followed a similar path
Both the Hamms and the firm’s advisors are coming up with a variety of ideas for how the firm’s tech and operations will work under the IBD next year, and IFP will be executing a lot of them, Chris says.
“The knowledge that you gain and the freedom that you have to do all that is very rewarding, but it also allows us to uncover technology that we never would have uncovered otherwise,” he says. “Everything that we’re doing as a broker-dealer is borne from the needs of the advisor.”
IFP has struck contracts for tech integrations with digital account-opener Agreement Express, AI and machine learning-powered compliance tool Beam Solutions and cloud-based, API-capable compensation management and reporting software Xtiva, the firm
The firm, which has
An internal social media network will work like Facebook and a resource library within the platform will operate like a search engine. Additionally, IFP has also planned an application allowing advisors to make home-office requests and check their status, along with the employee handling them.
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Robert Russo says the Independent Advisor Alliance has recruited nearly three dozen IFP reps, and other large enterprises have also made inroads.
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Independent Financial Partners’ CEO predicts the firm will retain about 80% of its business, despite a daunting series of challenges.
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Bill Hamm’s Independent Financial Partners has grown more than fivefold in 10 years with the No. 1 IBD.
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Dynasty, Raymond James and Stifel are among the biggest beneficiaries of recent advisor moves.
Ensuring compliance and building out infrastructure make starting your own BD a costly undertaking, notes David Millican, co-founder of ACG Wealth, an RIA, and the CEO of Arkadios Capital, an Atlanta-based IBD.
Millican knows the challenges well, having successfully blazed the trail now chosen by Hamm, although he notes the RIA was smaller than IFP and more niche-oriented toward high-net-worth clients. Including ACG, Arkadios now has 55 advisors on pace to generate more than $13 million in revenue in 2018.
The projected total would more than triple the $4 million in revenue produced by Arkadios last year. Four new home-office staff members starting this week in the IBD’s expanded new headquarters will push its head count above 20 from only two — Millican and a compliance staffer — at its launch in October 2016, he says.
Hamm spoke with Arkadios while considering starting his own IBD, according to Millican, who says the process is “definitely liberating, exciting and, truthfully, it’s fun.”
“We’ve grown a lot faster and had a lot more interest than even I anticipated,” Millican says. “I have no doubt he’ll be very successful.”
On the other hand, Hamm has faced a
Pat Sullivan and John Hyland’s Private Advisor Group, which is LPL’s largest hybrid RIA, has also reeled in other IFP advisors opting to keep their affiliations with LPL. Earlier this month, Private Advisor
“We were not anticipating a change, but when IFP decided to part ways with LPL, we conducted due diligence on firms within the LPL family and decided that PAG was the right fit for us,” Tim McKenna, co-founder of Harvest Financial Planning, said in a statement.
None of the departures from IFP have surprised Hamm, he says, adding that he had just had a meeting with a team of prospective recruits producing $7 million per year in revenue. At least 50 other advisors considering IFP generate about $15 million per year, and two firms with a combined 270 advisors have discussed selling their practices to IFP, he says.
“The surprise is the amount of outside interest that we’re getting,” Hamm says. “We’ll have a pretty incredible pipeline of new advisors.”