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Thinking About Going Independent? You’re Not Alone.

ASN Advisor Questionnaire Sample

The financial advice industry has long been dominated by large firms and wirehouses. For financial advisors, working for such organizations can provide a certain level of safety and support. But more and more financial advisors are considering striking it out on their own… and for good reason. When we ask the advisors who choose to work with us why they decided to go independent, there are a few reasons that tend to come up often.

I’m not happy with the payout.

Many financial advisors point to their dissatisfaction with the payout structure as a key factor in their decision to pursue independence. While the exact percentages vary depending on the organization, the average actual payout for an affiliated advisor within the wirehouse channel ranges from 30% to 45%, and in the Independent Broker-Dealer (IBD) channel, it stands between 75% and 85%. Payout grids can be complicated to understand, with many back-end and hidden charges and compensation structures that can shift from year to year. In some cases, accounts falling below a certain asset threshold might not even qualify for advisory payouts, with this minimum being at the firm’s discretion.

At ASN, our payout structure is simple. We charge a basis points fee on assets under management that starts at 12 basis points and decreases as AUM goes up. There are no additional platform or hidden fees. This transparency makes it simple for the advisor to know what he or she is getting when they sign up with us.

I want to maintain control of my book of business.

When financial advisors choose to switch firms, they often must leave at least part of their books behind. Noncompete and nonsolicitation agreements, portfolios that hold proprietary products, and the threat of legal action mean that making the switch can often mean at least a temporary reduction in the number of clients in an advisor’s book.

Here at ASN, we know that the relationship between advisor and client is one that takes time and trust to build. Advisors who partner with us can confidently grow their book of business, having full confidence that their clients are theirs to keep no matter what the future holds.

I want to create my own brand and offering but have the support of a large organization.

Large brokerage firms and wirehouses have established brands and offering sets that limit the flexibility financial advisors have in marketing and tailoring offerings for clients. It is no surprise that a substantial number of advisors who gravitate toward us seek greater control over these factors. Having the right branding and product set can make sure that you are communicating the right message, catering to your target audience, and serving your client’s needs in the way that you think is best.

ASN offers an open architecture, a comprehensive platform that empowers advisors to select from a diverse range of investment advisory products, programs, and money managers. Additionally, advisors can choose their preferred custodial relationships. This setup enables advisors to shape their business according to their vision, complete with their own branding and logo, maintaining control over their story.

These are just a few of the reasons that our advisors give for choosing to go independent. Though the choice isn’t a simple one, ASN can provide services and support that allow financial advisors to focus on growing their business while keeping control of what matters most to them.

To learn more about what ASN offers, contact us for a walk-through of our platform.