Pure RIA vs RIA Hybrid

If you are ready to exit the Broker/Dealer model you have two options you will have to choose between: the pure RIA and the RIA B/D hybrid. The decision is ultimately yours, and regardless of your decision we are eager to help you realize the benefits.

The Pure RIA

Pros:

• Life without FINRA: As a pure RIA you have a tremendously alleviated compliance burden enabled by your fiduciary commitment to clients. The pure RIA model in conjunction with SimplyRIA’s support will unlock true time freedom.
• No Mixed Message: Clients love to hear the RIA story. It conveys a clear and powerful message, you are committed to them. It also alleviates your restrictions on activities and outside business
• No Haircuts: As an RIA your business doesn’t have to be strong armed through an internal FMO. You are free to find the products and investment vehicles that best suit your clients
• Goodbye Blotters!:Yes in combination with our platform relationships and our back office support, you will not have to fill out trade blotters nor check registrars.

Cons:

• No 12B-1s: yes if you move to the RIA model you are surrendering 12b-1s and other trailing compensation. This does not include assets in wrap accounts. Depending on surrender charges, a shift in asset types may be possible
• No Variable Products: Sadly these do require a B/D to hold-if you are still planning on collecting a trail. Fortunately, there are amazing fixed products available for Advisors like yourself with much of the same potential

The RIA Hybrid

Pros:

• Keep Your Trails: if you have a large portion of your book and compensation in 12b-1 assets you can maintain that income stream unchanged.
• Continue to Write Variable Business: If you truly believe in VAs and VULs you can continue to employ them in the hybrid model.
• Hang Onto Your Licenses: Your licenses that require a B/D to renew

Cons:

• B/D Compliance: You are held ultimately to the B/D’s compliance yard stick. While we are happy to provide our back office compliance and minimize your workload, you are not going to realize the full benefit of moving to the RIA platform.