Anyone ever gone to their BD and ask to spin their RIA business off to where the BD no longer takes a cut? I'm sure it's not a great conversation but it's better than the BD losing it all.

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Keep in mind that the BD community recently lobbied FINRA and the SEC to let them off the hook should there ever be a problem with outside RIA’s and they were successful. In essence, if you have an outside RIA now, you’re on your own. This wasn’t the case in the past - BD’s were liable for supervision and got fined, even though the problem was in an outside RIA that they weren’t running.

Careful what you ask for.

Personally, at least for now, (while commissions are still around), I find it much safer and more lucrative to offload running an RIA and all that goes with it to the BD’s. The small percentage we give up to the firm is worth every penny. For now...

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RJ has that option at 100m

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I did it.

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Can I ask where you’re at for some context

Our BD told us they would still need to do compliance on it and still charge a % of revenue

We did it at First Allied when I was there and they took a percentage but we were able to stay under their E&O. They did not supervise, our group had its own compliance officer.

I know that an advisor at my firm did that before and the BD agreed to increase the payout to the advisor

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