Regulations to harmonize standards of care across registered investment advisor and broker-dealer channels have accelerated a convergence of business models. This convergence also reflects the impact of market trends; in particular, the shift in assets from commission-based brokerage to fee-based advice models and the rise of the hybrid or dually registered advisor.

Historically, registered reps have sought out turnkey technology platforms to boost the growth of their businesses. Today, the closed independent broker-dealer (IBD) ecosystem built on product and billing systems is succumbing to shifting priorities. The rep or hybrid advisor wants access to financial planning tools and best-in-class technology consistent with advice-led delivery. LPL, Raymond James, Edward Jones, and smaller IBDs are moving quickly to respond.