Independent Financial Partners says it has regulatory approval to launch its own broker-dealer and will start moving its advisors to the new BD from LPL Financial in April.

The RIA and office of supervisory jurisdiction says it has over 500 financial advisors.  It has $9.5 billion in assets under management and $41 billion in assets under advisement in 2017.

“This is a momentous occasion for IFP, since we played with the idea of starting our own broker-dealer over four years ago,” according to CEO Bill Hamm. “After years of research later, we informed LPL in February of last year of our intentions, submitted our new member application in July, and we’ve now received the approval from FINRA of our new entity.”

IFP’s advisors that transition from LPL will move onto a platform that the new broker-dealer is building with BNY Mellon’s Pershing. The firm also plans to launch an interface for its advisors.

“We’re truly going to disrupt the independent broker-dealer and RIA industry …,” said COO Chris Hamm, in a statement. “Meanwhile we’ve got competitors trying to recruit our people, doubters and skeptics telling us all the reasons this won’t work, and so on. Soon, though, people are going to see what we’ve been up to.”

Earlier in January, IFP said it finalized financial commitments from Pacific Current Group and NexBank. PCG, an asset management firm, has taken a 10% interest in IFP, while NexBank will provide IFP with a “significant line of credit.”

IFP says 15% of the firm will be shared with advisors that transition to its BD from LPL. In addition, IFP and its principals will keep the remaining majority stake in the firm after it opens its BD.

“The unique thing to point out is that rather than asking advisors to invest, IFP is granting them shares as a way to thank them for their loyalty,” the company said in statement.

“If we want to be able to compete with the LPLs and Ceteras of the world, we need to be able to recruit advisors and acquire other RIAs and broker-dealers,” said CFO Bill McCauley, in a statement. “We need capital partners like NexBank and Pac Current to make that happen.”

For its part, LPL Financial is fairly bullish on the level of assets it expects to retain from advisors electing to stay on its platform.

“To date, the advisors [that] did manage about two-thirds of those assets have made the decision and approximately 75% of [about $12 billion] are staying with us,” LPL President and CEO Dan Arnold said Thursday during a call with equity analysts. He added that the IBD is doing all it can to keep remaining IFP advisors and assets on its platform.