Ron Carson, an advisor with $3 billion in client assets under management, is breaking off his 20-year affiliation with LPL Financial and starting his own RIA and broker-dealer.
The departure represents a blow to LPL, but not a complete loss: Carson says he will continue to use LPL-the nation's largest independent broker-dealer-as the new firm's primary custodian and clearing agent.
"We realize that the marketplace is demanding more and more from advisors," Carson said in a prepared statement. "We want to continue to stay ahead of the competition and this required a move to our own RIA."
Carson Wealth Management Group, based in Omaha, Neb., will become an independent RIA in July and plans to establish a broker-dealer later in the year, according to the firm. The creation of a new RIA is designed to "optimize pricing arrangements for clients, offer enriched technology platforms and enhance real-time communication and rationale for portfolio transactions," the firm said.
Since Carson represents one of LPL's largest offices, the move appeared to lend support to a growing belief among some observers in the financial services business that the independent RIA model is a superior one for both advisors and clients. One key factor behind this trend is that RIAs are not subject to Finra rules and regulations, which some advisors believe limits their ability to communicate with clients.
The firm will also custody assets with TD Ameritrade and Charles Schwab Institutional, but Bill Dwyer, LPL's president of national sales and marketing, said that "the vast majority" of assets under Carson's management will remain with LPL.
"We have the unique ability to clear for both a broker-dealer and an RIA," Dwyer said. "What this means is that, in terms of assets under custody, we expect nothing will change for LPL."