A unique phenomenon is occurring in today’s financial services industry. Some might even call it a looming problem. Thankfully, forward-thinking organizations such as Independent Advisor Group LLC in Horsham are providing a solution.
According to industry veteran Kevin Supka, the financial services industry is “collapsing up,” meaning the average financial advisor is a 55-year-old male who has not developed a succession plan or an exit strategy for his business. Meanwhile, on the other end of the spectrum, newly minted advisors are having difficulty acquiring the industry experience they need to help their businesses thrive.
One solution to this situation is to organize and manage an office of supervisory jurisdiction (OSJ), and this is exactly what Supka and two fellow financial industry experts, Michael Brady and Leonard Borcky, did earlier this year when they created Independent Advisor Group. The trio kicked off their new enterprise in September at the National Constitution Center in Philadelphia. The theme of the launch was independence—one of the cornerstones of Independent Advisor Group’s mission.
As an OSJ, Independent Advisor Group organizes and supervises other financial services providers. In the process, the firm builds partnerships between young financial advisors who are just getting started and seasoned financial professionals who are eager to pass on their knowledge and expertise to the next generation, while creating a sustainable line of succession.
“We help baby boomer advisors, many of whom are in their late 50s and 60s, by facilitating a smooth transition into retirement while ensuring their business is passed along to capable, well-trained younger professionals,” says Supka. “With our assistance, the older advisor has the freedom and independence to transition their business the way they want to the successors of their choice. We provide the perfect environment for the older advisor to monetize their business and maximize the value of their asset while the younger advisor has the independence and freedom to fashion that business under the guidance of an experienced, like-minded mentor while acquiring clients and developing a career. Financing mechanisms can also be deployed to help facilitate the transfer.”
With LPL Financial as its broker-dealer, Independent Advisor Group currently works with 27 independent advisors who have their own practices to channel their financial planning businesses into the firm’s Horsham location. Independent Advisor Group also has non-OSJ branches in eastern Pennsylvania and southern New Jersey. Working with Independent Advisor Group allows the advisors under its supervision to focus on growing their own clients and businesses, while Independent Advisor Group handles compliance, back-office tasks, training and much more.
“I’ve been with LPL since 1993, and I’ve been in the financial services industry since 1986,” says Supka. “LPL is the largest independent broker-dealer in the country, and we are one of the top one percent of all LPL Financial firms in terms of annual production.”
‘Working in Concert’
Brady met Supka 13 years ago when he joined the OSJ. “We had a great working relationship from the start,” says Brady. “We both felt that by working in concert with one another we’d be able to build something really important for our fellow financial services professionals.”
Brady characterizes both he and Supka as “very Type A,” and they knew they would need someone on their team who could balance them out, someone with a strong operations and compliance background.
“We sought out Lenny [Borcky], who we knew was aligned with our vision,” Brady says, “and everything took shape.”
Brady’s role at Independent Advisor Group is to help the advisors write their business plans, hold them accountable and help them track and achieve their goals.
“It’s fun, and every year I learn something new from the many advisors we serve, things and ideas I take into my own practice,” says Brady, who maintains a flourishing client base of his own; he and Supka are the top two producers in the organization. “We all get together once a quarter and share ideas, like a mastermind group. Everyone grows and benefits.”
This year’s fourth-quarter meeting will be held in Atlantic City, N.J., in early December.
“As Mike [Brady] put it so well, everyone comes with their dreams and their goals in a bag and puts them out on the table to review and discuss,” says Supka. “We aggregate all of the numbers and set goals for the coming year. For the past 15 years, those numbers have translated into double digits year after year.”
“Our model is a great way to go,” Brady adds. “But we are always open to learning new ideas from our members.”
Borcky joined LPL in 2008 after an 11-year career as a compliance and operations professional at another large financial services organization. He works with the entire OSJ team to achieve operational efficiencies and strict adherence to all FINRA, SEC and LPL compliance regulations.
“My staff on the operations side is also the team that does the transition work for new advisors coming in,” says Borcky. “I basically keep the engine running.”
Supka, Brady and Borcky are all FINRA Series 24 General Securities Principals who, as a large regional OSJ, are able to offer a full slate of services to their advisors at competitive pricing. These services include regulatory compliance, supervisory services, practice management and coaching, access to strategic partners, training, support, turnkey office space and more.
Practicing under the LPL umbrella allows advisors to be fiercely independent, which is LPL’s hallmark, and to build their own books of business in any way they choose. Independent Advisor Group also helps advisors transition into LPL if they come from different brokerage firms.
“We’re also great matchmakers,” says Brady. “After we put together younger advisors with professionals we know are leaving the business in a few years, we then help them work as a team in ways that are unique to them and not tied to specific rules on how they must run their business.”
Independent Advisor Group is always looking for top performers who want to join forces with other top performers, who value family-style interaction and engagement, who can benefit from access to a wide range of services and expertise, and who may want outside assistance with their own succession planning. For more information, call 215-442-9400 or visit or visit www.independentadvisorgroup.net.
Photograph by Allure West Studios
