ING Advisors Network is adopting a new business model to try to discourage brokers from leaving the firm to become independent registered investment advisors. In keeping with the industry-wide trend, a large percentage of the firm’s 9,000 brokers are currently considering dropping their NASD stockbroker registration to go it alone and become fee-based RIAs, said John Simmers, chief executive officer.
To keep independent-minded brokers’ assets at the firm, ING will adopt a dual-registration model. Unlike the traditional model where brokers only sell investments to clients through the brokerage for commissions, the hybrid model lets brokers market under their own name while letting them keep fiduciary responsibility and back-office services at ING. Within four months, the firm will have an upgraded fee-based account management platform and new hybrid model education offerings. About 2,000 brokers a year switch to this model, according to a recent report by consultancy Moss Adams.