What You Have to Know
- The $300 billion RIA already has a referral relationship with Schwab; neither impacts the charges paid by shoppers.
- CEO Peter Mallouk, in the meantime, expects a 3rd dominant custodian to emerge.
- Inventive Planning is not actively looking for a brand new custodian, Mallouk says.
Inventive Planning just lately joined Constancy Investments’ shopper referral program, for which the Kansas-based RIA pays a $50,000 annual payment plus 0.10% of fastened revenue shopper property and 0.25% of different shopper property.
“We’re thrilled to be a part of this system,” Inventive Planning President and CEO Peter Mallouk instructed ThinkAdvisor in an electronic mail final week, noting that his agency, which has greater than $300 billion in property beneath administration and advisement, pays the identical charges because the roughly 70 different corporations that take part.
By its participation within the Constancy Wealth Advisor Options program, or WAS, Inventive Planning receives referrals from Constancy Private and Office Advisors LLC, or FPWA, a registered funding advisor, and Constancy Investments, the agency famous in a March 29 Type ADV brochure filed with the Securities and Change Fee.
Underneath this system, FPWA promotes Inventive Planning, which pays charges for every referral acquired based mostly on its AUM attributable to every referred shopper, the brochure says.
Inventive Planning, not the shopper, pays the referral payment, the shape states. The agency was chosen to take part in this system “because of its different enterprise relationships with FPWA and its associates, together with Constancy Brokerage Providers LLC,” it says.
“Consumer charges are the identical no matter any supply, whether or not or not it’s Constancy, Schwab, a tax agency or our different strategic companions,” Mallouk stated in his electronic mail.
Inventive Planning recommends establishing brokerage accounts with Charles Schwab & Co. or Constancy Institutional Wealth Providers, the brochure notes. The agency receives referrals from Schwab via its participation within the Schwab Advisor Community.
As as participant in Constancy’s referral program, Inventive Planning agreed to not solicit shoppers to switch their brokerage accounts from associates of FPWA or set up brokerage accounts at different custodians for referred shoppers apart from when its fiduciary duties would require it accomplish that, the brochure says.