“No,” Gold said. “The decision to offer our new 1099 affiliation model was based on opportunities we saw in the market and our desire to allow all advisors evaluating their choices for independence to consider Steward."
Financial Advisor asked Gold why he believed the independent affiliation model has lately become so attractive to so many advisors, who for years were content with their W-2 status at firms where they had worked for decades.
“Our industry is in the early stages of an evolution that will forever change the wealth management landscape,” he said. “The benefits advisors receive from running their own practices as part of traditional wealth management firms are continuing to erode. As the space changes, the myriad choices and extensive resources available to advisors in the independent space are leading the way for advisors of the future.”
Financial Advisor asked Gold how Steward was able to offer a 1099 independent affiliation model that includes equity in the company, while other firms could not or would not.
“As our name suggests, Steward Partners was built on the belief in the value of partnership,” he said. “Created by and for today’s wealth advisors, we believe advisors should be compensated as advisors and (as) business owners.”
Gold said that the equity component was a critically important part of Steward’s partnership model and that all affiliating advisors shared in the firm's success equally, whether they joined as W-2 employees or 1099 independent contractors. He said that Steward had invested significant time and resources in developing its new offering to ensure that the firm could provide existing independent advisors and those considering independence with the flexibility to select the compensation model that worked best for them.
“We are in the early stages of our growth cycle as a company,” Gold said. “We see our growth accelerating over the next five years, thanks to our unique new offering, as well as numerous external factors, including the growing independent space within the wealth management industry; the increasing number of traditional wealth management advisors (going independent); and a generational succession opportunity driven by baby boomer advisors."
Advisors interested in the new 1099 model should visit www.stewardpartners.com for further information.
Steward Partners, formerly Steward Partners Global Advisory LLC, a hybrid RIA broker-dealer headquartered in Washington, D.C., manages $13 billion in client assets from 21 offices nationwide.The investment advisory arm of the firm, registered with the SEC in New York, manages $5.2 billion in client assets.
Raymond James Financial Services, Inc., Steward's broker-dealer, is a diversified financial services firm headquartered in St. Petersburg, Fla.