NewEdge Advisors, a New Orleans-based registered investment advisor, said Thursday that it will now offer advisors an employee model of affiliation, which it calls a W2 model, in addition to an independent, or 1099, model.
In the new employee model, breakaways and other advisors who affiliate with NewEdge Advisors will operate under the NewEdge brand, and NewEdge will invest in their businesses. NewEdge will also purchase the practices of retiring advisors at such firms.
The firm said the first group to affiliate under the new employee model is Reinke Gray Wealth Management, which had joined NewEdge in 2018 under the independent model. The South Dakota-based firm, led by Brad Reinke, oversees $400 million in assets.
NewEdge Advisors, founded by Alex Goss and Neil Turner, currently has 265 affiliated advisors in 32 states who oversee $16.5 billion assets.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
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Chair also praised the passage of stablecoin legislation this week.
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