Home News FINRA Approves IFP’s Broker-Dealer Application

FINRA Approves IFP’s Broker-Dealer Application

Independent Financial Partners, currently a hybrid registered investment adviser and office of supervisory jurisdiction (OSJ) with LPL Financial, has been approved by FINRA to launch the firm’s broker-dealer, IFP Securities LLC.

Independent Financial Partners, currently a hybrid registered investment adviser and office of supervisory jurisdiction (OSJ) with LPL Financial, has been approved by FINRA to launch the firm’s broker-dealer, IFP Securities LLC. The firm will officially transition its network of advisors starting in April, after which IFP will be truly independent.

“This is a momentous occasion for IFP, since we played with the idea of starting our own broker-dealer over 4 years ago,” said CEO Bill Hamm. “After years of research later, we informed LPL in February of last year of our intentions, submitted our new member application in July, and we’ve now received the approval from FINRA of our new entity. This is the first step of a dream come true.”

IFP originally joined LPL in 2007 following LPL’s acquisition of its former broker-dealer, Mutual Service Corporation. Between now and April 2019, IFP will be finalizing the platform the firm is building in conjunction with Pershing while also preparing its advisors for the transition. On the technology side, IFP said that it is putting the finishing touches on a brand-new proprietary advisor interface, Advisor[X].

“I sit in meetings every day and tell our employees, if only people could see what we’re building,” said Bill’s son, Chris Hamm, the firm’s chief operating officer. “We’re truly going to disrupt the independent broker-dealer and RIA industry, and for the past year or more we’ve just had to keep our heads down and keep working. Meanwhile we’ve got competitors trying to recruit our people, doubters and skeptics telling us all the reasons this won’t work, and so on.”

He added, “Soon, though, people are going to see what we’ve been up to. And I can’t tell you how excited and proud I am to work for a firm that is going to bring some serious positive changes to the way firms like ours service financial advisors and their clients.”

IFP recently finalized financial commitments from two partners, Pacific Current Group and NexBank. Pacific Current Group purchased a 10 percent interest in IFP in the form of permanent capital, while NexBank will provide a line of credit to assist the firm in growing its infrastructure and advisor headcount.

The firm’s three-tiered ownership structure is comprised of Pacific Current Group’s 10 percent stake; while IFP is granting 15 percent to the advisors that transition to the broker-dealer once it’s launched; and IFP and its principals will maintain control with the remaining majority stake.

IFP provides its network of financial advisors with technological, compliance, marketing, business development, and operational support. As of December 31, 2017, its advisors had more than $40 billion in assets under advisement.

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