Broker Check

2024 The Year of Impact


Transcript Available Below

Hello everyone, and welcome to the first IFG Advisor Newsletter of 2024. Today, I would like to discuss three important topics that will impact our industry this year."

First, the Department of Labor has recently published the final version of its independent contractor vs. employee rule, which is scheduled to go into effect on March 11. However, there is still some uncertainty regarding its impact on independent financial advisors. What we do know is that FSI and other industry advocates are tirelessly fighting on our behalf to create an exception for the independent financial advisor channel. This debate seems to resurface every year, but so far, we have managed to avoid being classified as common law employees of broker dealers. While I believe that we will not be affected by this rule, it is important to note that it has become a political issue. Rest assured, we are closely monitoring the situation and will keep you informed of any significant developments. For now, it's business as usual, and we remain staunch advocates for preserving the independent contractor status for your businesses."

Now, let's move on to our second topic: recognition. With the consolidation of Osaic's broker dealers, many of you have been asking what recognition means in the new Osaic world. As a member of the National Advisory Board, I have a seat at the table when it comes to recognition, and I'm eager to hear your thoughts if you haven't already shared them. This year, recognition has been defined as the top 825 advisors from the consolidated broker dealers. The top 75 advisors will attend a meeting in Monaco in March, the next 250 will gather in Riviera Maya in June, and the following 500 will convene in Salt Lake City in July. We have already received valuable feedback from some of you regarding the dates and timing of these meetings, and I will make sure your voices are heard. Recognition remains an important part of our business, and we recognize that different generations have varying expectations. Our goal is to ensure that the consolidated recognition programs moving forward are meaningful and aligned with your needs. If you haven't shared your thoughts on what you consider important about recognition, please send me a note. Your input is crucial."

Lastly, I would like to talk about our efforts behind the scenes to create a platform for advisors who wish to expand their business through acquisition, as well as those who are considering selling their businesses in the near future. Over the next 10 years, the independent financial advisor space will witness a significant transfer of assets to younger advisors. Astonishingly, it's estimated that nearly 30% of the trillions of dollars to be transferred do not currently have a succession plan in place. We see this as a tremendous opportunity. With osaics consolidation to one broker dealer, which now boasts over 12,000 advisors, not including the recent acquisition of Lincoln Financial Group's independent channel, we are in a prime position to facilitate opportunities for advisors within our family who wish to grow through acquisition. Stay tuned for more information on this exciting initiative. And for those of you who have already expressed your interest in growing through acquisition, rest assured that we are actively pursuing opportunities in that space."

In closing, I want to wish everyone a fantastic 2024, and I look forward to working together to make this our best year ever.