$450 million hybrid RIA network launches with LPL

A group of hybrid registered investment advisers is rebranding as it looks to build a network for independent advisers at LPL Financial. Thirteen independent advisers with about $450 million in assets have started a collective, known as the Financial Advocacy Network, as they look to add more advisers to their group and grow to $1 billion or more in client assets in five years. The advisers, who joined LPL in March and April this year according to regulatory filings, had been operating as four MidAtlantic and Southeast firms, The Monitor Group of Rockville, Md., Legacy Wealth Management of Mount Pleasant, S.C., Wenger Financial Services of Newport News, Va., and Newcorp Wealth Strategies of Atlanta. They all conducted fee-based business and reported on the same ADV under Maryland Financial Group. They cleared through Pershing before joining LPL, according to FAN's co-founder, Chris Cox. They will still conduct their RIA business through Maryland Financial Group, which had been owned by Chris Cox but will now be owned by FAN, which Mr. Cox co-founded with his wife, Amy Fernicola Williard, and Marty Sullens, the group's head of business development. Ms. Williard serves as the group's chief compliance officer. FAN will provide “a comprehensive array of compliance supervision services,” back office, and succession planning and training support to the advisers who join the network, according to Mr. Cox. “We have our own individual clientele, but the advisers are also our clients,” Mr. Cox said. “Basically, we built some infrastructure for advisers who want to join our group, so they don't have to do it.” LPL's recruiting team also will help FAN expand in the MidAtlantic and Southeast, according to Steve Pirigyi, executive vice president of business development at LPL. Mr. Cox said the concept for FAN was developed three years ago but was just being announced and implemented since the firms moved to LPL.