
Bleakley Financial's Strategic Shift to Advisory Services
In a significant move towards a fee-based advisory model, Bleakley Financial Group has officially severed ties with LPL Financial, transitioning its brokerage services to Purshe Kaplan Sterling Investments (PKS). This strategic evolution underscores a growing trend among registered investment advisors (RIAs) that prioritize transparent, advisory-focused engagements to enhance client relations and streamline operations.
Historical Context of the Transition
For nearly a decade, Bleakley operated as an office of supervisory jurisdiction (OSJ) for LPL, benefiting from the robust infrastructure and resources the larger brokerage provided. However, as the RIA landscape matures, firms like Bleakley are beginning to recognize the advantages of being client-centric rather than broker-centric. This shift reflects a broader industry trend where more advisors are moving away from traditional brokerage affiliations to embrace a fee-based structure, appealing to clients who value independent advice.
The Impact of the Shift on Operations
Despite the logistical changes involved in switching broker/dealer affiliations, Bleakley has assured clients that day-to-day services remain unaffected. More than half of Bleakley’s advisors have already transitioned away from broker/dealer affiliations, reflecting the firm's desire to fully align with the advisory model. This transition to PKS represents an optimization of services allowing advisors to focus on their fiduciary duties while still benefiting from custodial support offered by LPL.
Financial Innovations and Increased Advisory Focus
The evolution towards a standalone, fee-based RIA positions Bleakley to take advantage of innovative financial services, tailored directly to clients' needs. Following a substantial investment from Rise Growth Partners, Bleakley has diversified its offerings and hired new executive leadership tasked with spearheading growth strategies. This includes creating equity programs for its advisors, which can lead to a more motivated workforce focused on long-term client relationships.
Looking Ahead: RIA Landscape Transformation
As wealth management continues to shift from transactional models to fee-based structures, the move by Bleakley may set a precedent. With the landscape becoming increasingly competitive, RIAs are challenged to innovate while ensuring robust client engagement. The success of this transition could prompt further shifts across the industry, compelling advisors to evaluate their practices.
The Future of Fee-Based Financial Planning
The momentum towards a fee-based financial planning model is amplified by the evolving client expectations for transparency and personalized service. For financial planners and wealth advisors, this shift indicates a need to adapt to new methodologies that emphasize client education and engagement. This model not only enhances client loyalty but also positions advisors as trusted partners in navigating complex financial landscapes.
As Bleakley Financial sets an example with this strategic move, the industry watches closely to see how it influences practices across the wider RIA community and whether more firms will follow suit in pursuing a fee-based model in the coming years.
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