by bobby l. hickman
JASON S. ANDREWS FOUNDER, CEO
Brokers Weigh
GOING INDEPENDENT
MORE ALTERNATIVES AVAILABLE FOR BREAKING AWAY
B
rokers who had recently delayed plans to break away from the large wirehouses and go independent are again exploring alternatives paths to go into business for themselves as the financial turmoil of 2020 fades. “More than a third (36 percent) of brokers are open to either joining an existing RIA firm as an employee or partnering with platforms that provide technology and operations
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MAR 2021
support – up from a combined 16 percent in the fall survey,” according to TD Ameritrade’s “Break Away to Independence Survey Spring 2020.” Those favoring the traditional route of launching a new independent registered investment advisory firm (RIA) fell to 25 percent over the same period, the report continued. Meanwhile, Investment News Research reported a net gain of 931 RIAs changing firms during the first
nine months of 2020. One company focusing on attracting wirehouse brokers who want to break away is Merritt Point Wealth Advisors in Old Greenwich, Connecticut. Jason Andrews, founder and CEO, said he worked at large wirehouses for more than a decade before launching his own independent company. He combined that background with experience running his own practice to create a new “plug and play” model for independent advisors. Andrews said the number of advisors moving to the independent channel was already increasing before the COVID-19 pandemic caused brokers to delay their plans. He believes that post-COVID more people are open to discussing their options for transitioning to the independent side with him. “We offer a modern approach to wealth management,” Andrews said. “I saw both the benefits and the pitfalls of the wirehouses first-hand. We took what I learned there and all the great things they provide and used that as a foundation. Then we added on technology, marketing, and a flexible infrastructure. It’s a fresh way to look at things: a new-age approach that I believe is cool and exciting.” Andrews said an advisor can move from a wirehouse to Merritt Point and bring their book of business the same way they would transition to another wirehouse. They can also acquire existing books of business through the company (which also offers financing). Advisors can then access wirehouselevel research while leveraging new technology that enhances the client experience. The company also offers support with individualized marketing, advertising, and social media activities. Third-party business development partners help Merritt Point advisors build their book and maintain client relationships. Other
