A group of advisors affiliated with LPL Financial (LPLA) launched an RIA on Tuesday that will share all profits with its partnering advisors.
Good Life Advisor Systems formed the “mutual RIA” to “distribute the proceeds of our model, after expense, to advisors, not only to principals,” said Conor Delaney, a co-founder of the firm, in an interview.
“A principal or two principals might own a company that includes, say, 400 advisors, and the [bulk of the] profits would go to these two owners,” explained Delaney. “In our model, the profits would be distributed to the advisors. It’s very unique and not done often in the industry.”
Delaney formed Good Life Advisor Systems, based in Wyomissing, Pennsylvania, with Courtnie Nein. Both worked as advisors for Waddell & Reed before breaking away in 2012.
They’ve since opened nine offices in seven states and recruited about 20 reps from Ameriprise (AMP), Wells Fargo (WFC), Morgan Stanley (MS), Edward Jones, Mass Mutual, MetLife, Wadddell & Reed and some regional broker-dealers.
About 20 advisors with over $400 million in assets have been recruited to the so far.
“We plan to double our number of offices by next year to 18,” Delaney said. “It’s hard to quantify precisely, but that could mean we’d have 50 reps. We’d like to have $1 billion in assets by the end of Q1 ’15 and around $2 billion by year-end 2015.”