The Financial Services Network hires top talent, Jim Worden, CFA®, CMT®, CAIA®

SACRAMENTO – July 16, 2019 – The Financial Services Network (The Network), a leading LPL Financial Enterprise Office, announced today that Jim Worden, CFA, CMT, CAIA will join the firm as Vice President, Portfolio Consulting, managing the Network’s Portfolio Consulting team, effective July 15th.

The Portfolio Consulting team offers customized research, trading and overlay portfolio management through their Enterprise Office/Multi-custodial Hybrid RIA with partnerships that include LPL Financial, Schwab, Fidelity and TD Ameritrade. With more than 20 years of professional experience, Worden will focus on delivering exceptional service and product experience for The Network’s advisors.

Worden joins The Network from Allworth Financial (formerly Hanson McClain) where he served as Director of Research.

“We could not be more excited to have Jim joining our organization. We are committed to investing in top talent as we enhance our ability to support our advisors and help them take their businesses to the next level.” – Christopher Mercado, Managing Partner and Chief Investment Strategist with The Network.

Prior to Allworth, Worden held a variety of leadership and asset management roles at Securities America, Iron Point Capital, Sierra Capital and Wells Fargo Securities. Worden graduated from Brigham Young University in 1998 with a Bachelor of Science, International Business Management.

“I believe in The Network’s vision for the future of this industry and their passion for supporting independent investment advisors,” Worden states. “I am looking forward to making my contribution to an already talented team and help grow an organization that focuses exclusively on helping independent advisors thrive as entrepreneurs.”

Jim will be reporting directly to Jeremy Olen, CFA, Managing Partner and Chief Investment Officer with The Network, who built and oversees The Network’s customized Portfolio Consulting services offering. “Jim’s contribution to the team will positively impact our organization by creating more capacity for the firm, provide mentorship for our team, and most importantly enhance the value of the services we provide our advisors and their clients,” says Olen. “We are thrilled to have him on board.”

What Exactly Does “Hybrid” Mean in Financial Services?

Christopher Mercado, MBA, CFP®, CIMA®, AIFA®

Managing Partner at The Financial Services Network

In the financial services industry, we often hear statistics about poor financial literacy in America and how that’s attributed to a lack of understanding of basic terminology: recent GuideVine research showed that nearly half of survey respondents couldn’t adequately define the concepts of interest or bankruptcy.

The lesser-known secret is that financial advisors can be just as confused by the increasing complexity of institutional and regulatory lexicons—in fact, many that I meet struggle to continually educate themselves and keep up with all the jargon.

The term that seems to stump advisors the most these days is “hybrid,” and to be honest, I don’t blame them. Depending on its context, the label takes on new meaning, so I wanted to provide a brief explainer on the definitions of hybrid and how they’re used.

Hybrid: Demystifying the Model

Implying the best of both worlds, “hybrid” usually brings up the mental image of a Toyota Prius—or perhaps a designer dog like the Labradoodle. However, the concept has grown increasingly popular in financial services—and with that trendiness comes befuddlement.

When advisors are contemplating a transition from one firm to another, or breaking away entirely, “going hybrid” can bring up unnecessarily perplexing questions, detracting from the higher-level and more important conversation of what’s best for your business.

So let’s cut through the confusion and break down three common phrases:

1.      Hybrid business model

2.      Hybrid RIA

3.      Hybrid advisor

1. Hybrid Business Model

One of the most commonly used applications of the term “hybrid” is derived from the type of business model that an advisor can offer a client—both fee-based and commissionable.

A commission-based business model requires the Series 6 or 7 and the Series 63 securities licenses to serve as a Registered Representative. This allows an advisor to generate a commission and earn trail revenue through a broker-dealer transaction. An advisor can build and manage a successful business working with clients in only a brokerage or commissionable business model.

However, in most cases, a broker-dealer also provides advisors with flexibility and access to accounts where an advisor can charge a fee and engage the client as a fiduciary. As such, the advisor needs either the Series 65 or 66 Investment Advisor Representative licenses that is held with a Registered Investment Advisor (RIA) firm.

This RIA is typically owned by the broker-dealer. When an advisor is affiliated with a firm’s broker-dealer and the broker-dealer’s owned RIA, the advisor is accessing a hybrid business model offering both brokerage and fee-based account solutions. This is how most independent, wirehouse, and regional firms (such as Merrill Lynch, UBS, Edward Jones, Cetera, Kestra, and LPL Financial) are structured.

2. Hybrid RIA

Advisors can join or establish their own RIA if they only want to work with clients in a fiduciary capacity and generate revenues through a fee-based relationship. The RIA will then have custodial partners (like Charles Schwab, TD Ameritrade, Fidelity, and LPL Financial) in which the advisor can access accounts, managers and investment platforms to offer clients. Some RIAs can have multiple custodial partners for greater business model flexibility.

Here’s where it gets trickier: Advisors who manage a fee-based business model through a separate RIA affiliation may still have clients with commissions. Hence, many broker-dealers offer a hybrid broker-dealer affiliation with a separate, non-broker-dealer owned RIA. Still with me?

This is where the RIA industry and the traditional broker-dealer model intersect. It is not that the traditional broker-dealer model (in most cases) did not offer RIA or fee-based account services, it’s that advisors are looking for more autonomous and flexible solutions—either through a regional/national RIA or their own.

A hybrid RIA is simply an RIA with both a custodial and a broker/dealer partner to conduct fee-based and commissionable business respectively. Notably, the RIA in this instance is not the integrated or wholly-owned broker/dealer offering, but rather a separate business and support function.

3. Hybrid Advisor

To make things even more complicated, it is common for institutions to refer to advisors as hybrid advisors—i.e. those affiliated with an RIA and a broker/dealer through separate contractual arrangements.

Some in the industry may call a hybrid advisor someone who is “dual-registered,” but we find that the term only adds to the confusion due to the varying vernacular of regulatory bodies. We can bring this full circle by simply defining a hybrid advisor as an individual who is affiliated with a hybrid RIA and thereby accessing a hybrid business model.

A Quick Recap

Going hybrid doesn’t have to be as complicated as it might sound—especially when you’re familiar with these three terms:

·        Hybrid business model: a financial advisor’s ability to offer both fee-based and commissionable services to clients.

·        Hybrid RIA: an RIA that has a contractual relationship with a broker/dealer, as a separate and distinct entity, to offer commissionable products.

·        Hybrid advisor: an advisor affiliated with a hybrid RIA—who, by definition, also manages a hybrid business model offering both fee-based and commissionable services to clients.

What Hybrid Means to You

With all this noise and jargon in the financial services industry, it’s easy to get tripped-up on some basic fundamentals by reading too much into a name. The meaning of “hybrid” depends on its use, which is entirely based on what’s best for your business.

Whether you’re looking for full flexibility or just want the simplest-to-understand solution, our team at The Financial Services Network can help. We serve over 270 advisors nationwide, offering six core areas of focus, including compliance, operations, virtual administration, and technology consulting.

Want to learn more about going hybrid? Contact us to get started.

Investment advice offered through Strategic Wealth Advisors Group, LLC, a registered investment advisor. Strategic Wealth Advisors Group, LLC. and The Financial Services Network are separate entities from LPL Financial. For Financial Professional Use Only. Not For Public Distribution. Securities offered through LPL Financial, member FINRA/SIPC.

Three Organizations Recognized by Kolbe Corp for Impact With Strengths

Three organizations, including nonprofit and for profit enterprises, have just been announced as finalists for Kolbe Corp’s 2018 Conative Excellence Enterprise Award, for applying strengths theory to make lives better. The winner will be announced at Conation Nation Symposium, Oct. 25–26.

For profit and nonprofit enterprises share one major success criteria. They must understand people before making a significant impact. In 2018, three organizations have demonstrated superior understanding of people’s innate strengths, and have just been recognized as finalists for Kolbe Corp’s Conative Excellence Enterprise Award.

The three finalists are Bethany Christian Services, The Financial Services Network and LSW Architects — representing a diverse cross-section of organizations in nonprofit, financial and professional services. The winner will be announced, along with the individual Professional Award recipient, at the Conation Nation Symposium in Scottsdale, Arizona, Oct. 25–26.

“We’ve seen that successful organizations excel when they view their employees, customers and stakeholders in terms of strengths,” said David Kolbe, CEO of Kolbe Corp. “These finalists show that understanding human potential transcends industries and sectors. We’re incredibly proud to be associated with each of these finalists for our Conative Excellence Enterprise Award.”

Bethany Christian Services (Grand Rapids, Mich.)

Bethany Christian Services is a global nonprofit organization that brings families together and keeps families together. Strengthening families for the well-being of children is its top priority. The organization’s services include adoption, foster care and pregnancy counseling. It also provides counseling to families, assists refugees and immigrants resettling in the U.S. and partners with several international countries to help keep families together. “The work we do equips families to be the answer for children in need, as Christ intended,” says Bethany Christian Services.

The Financial Services Network (San Mateo, Calif.)

The Financial Services Network comprises a highly specialized group of business, investment and compliance professionals dedicated to serving the needs of an elite community of independent financial advisors. United by a common bond of excellence and sharing the desire to elevate their practices, its advisors partner with The Financial Services Network in the pursuit of growth, efficiency, acquisition strategies and seamless succession plans.

LSW Architects (Vancouver, Wash.)

LSW offers a full range of architectural, interior design and planning services and has been fortunate to partner with remarkable clients over its 60+ year history — resulting in a body of built work that continues to change the face of its Vancouver, Washington community and communities beyond. “Our people are the heart of our success,” says a spokesperson. “Our dedicated team implements their unique talents to positively impact our projects — all the while producing a supportive, lively work environment that naturally breeds a sense of collaboration and creativity.”

About Conation Nation Symposium

Conation Nation Symposium will take place October 25 and 26 at the DoubleTree Resort in Scottsdale, Ariz., and is the authoritative conference on conation — the part of the mind used in action and achievement. The event will feature a variety of presentations from leaders in coaching, human resources, and personal relationships; including Kathy Kolbe, Dan Sullivan and keynote speaker Brian Burkhardt.

For more information about Conation Nation Symposium, visit: http://kolbe.com/cns.

About Kolbe Corp

Since 1977, Kolbe Corp’s mission is to help people succeed by having the freedom to be themselves. More than one million people have completed Kolbe assessments to better understand their conative strengths — natural instincts that govern action and achievement. Thousands of organizations use Kolbe Corp’s assessments and consulting services to be more productive and to build effective and engaged teams.

Kolbe Corp’s flagship online assessment, the Kolbe A™ Index, is the most powerful personal strengths assessment available, with proven reliability and validity. The Kolbe A Index is available online at http://kolbe.com.

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The Network recruits $245m team from Cetera, adds Wilshire research

Andrew Jones, CityWire USA  19 July 2018, 13:39

The Financial Services Network (The Network), an OSJ of LPL Financial, has taken on a new firm and partnered with Wilshire Funds Management.

Newly launched California RIA joins LPL Financial

Andrew Jones, CityWire USA  12 July 2018, 14:26

Happiness Wealth Management, led by ex-Merrill Lynch Advisor Mike Duffy, has joined LPL Financial’s broker-dealer and RIA platform.