Commonwealth Monetary Community introduced that it could unveil a number of new packages and providers to assist its advisors supply extra providers for high-net-worth shoppers. The fast-growing impartial broker-dealer can also be opening an IT assist desk and repair heart in Cincinnati.
Karen McColl, senior vp of wealth administration at Commonwealth, detailed numerous these packages in a normal session on the agency’s annual convention yesterday in Aurora, Colo. Particularly, Commonwealth is looking for to take advantage of the convergence of retirement planning and wealth administration because it tries to allow reps to capitalize on the persevering with progress within the nation’s prosperous market.
“Wealth administration is your aggressive benefit,” she mentioned. The SECURE Act will “drive up” the variety of retirement plans and the nation’s total stage of financial savings, she predicted.
Commonwealth is including instruments for earnings optimization, danger administration and Medicare and different medical health insurance points. The agency can also be enhancing its subscription providers, that are proving to be a preferred compensation mannequin for youthful shoppers.
McColl famous that households with greater than $5 million in property now comprise greater than 1.5% of the U.S. inhabitants. To supply extra options to shoppers with extra property, Commonwealth is doubling its choices of hedge funds, personal fairness and personal credit score by a partnership with iCapital.
As a part of its multifamily workplace mannequin, the agency might be providing banking and lending providers, household governance recommendation, tax administration and concierge providers.
Because the advisor trade continues to consolidate, Commonwealth is seeing extra of its community corporations rework themselves into bigger enterprises. Accordingly, it has created a market than may also help older advisors monetize their companies and growth-oriented corporations make investments and outright acquisitions. Matt Chisholm, senior vp of enterprise options, mentioned the agency made extra loans final yr than in any earlier yr. Reportedly, a number of enterprise corporations affiliated with Commonwealth want to change into “serial acquirers,” he mentioned.
Based on Monetary Advisor’s 2023 Impartial Dealer-Vendor Survey, Commonwealth’s common rep produced $986,000 in revenues final yr. That’s greater than double the common income per rep at most IBDs. The typical advisor on the Waltham, Mass.-based agency is believed to supervise about $125 million in property, in contrast with about $50 million at most of its rivals.
Though Commonwealth maintains an agnostic place on the compensation advisors select, the variety of reps who’re both fee-only RIAs and funding advisor representatives continues to develop. One government mentioned the determine is above 300 of its 2,200 reps. There was a session on the fee-only possibility on the convention and, within the hallways and lunch tables on the occasion, it was a relentless matter of dialog.