Tampa, Florida-based hybrid RIA Independent Financial Partners (IFP) is to split from broker-dealer LPL Financial.
IFP, which joined LPL 2007, has 568 investment advisors, $9.49 billion in discretionary assets under management and $27.4 million in non-discretionary managed assets, according to the firm’s most recent ADV filing.
It has announced plans to separate from LPL and form its own broker-dealer over the 12-months.
‘LPL has been a great partner over the past 11 years,’ William E. Hamm, IFP’s chief executive and president, said.
‘They’ve provided a platform which, combined with our ‘advisor first’ mentality, has allowed us to grow IFP into something special. But with that growth comes the need for us to transition to an environment where we can control our own destiny and address our more complex needs.’
Part of the plan includes building out an advisor platform centered on technology, which the firm said its software engineers have already started working on.
Asset allocation and manager selection for the firm's model portfolios is led by Aaron Gilman, chief investment officer of IFP.
According to Hamm, 80% of the firm’s business is fee-based and the percentage has been increasing.
Andy Kalbaugh, managing director and divisional president at LPL Financial, said: ‘In discussing our respective futures, it became evident that our firms’ directions are not strategically aligned.’
‘We wish them all the best in this new venture. We’ll continue to partner closely for the next 12 months to ensure a thoughtful separation.’