Two groups affiliated with independent broker-dealer Securities America shared news Monday on how they expect to recruit both more hybrid advisors and wirehouse reps to their platforms.
Arbor Point Advisors — formed by Securities America and NorthStar Financial Services Group as a joint venture in July to support hybrid advisory firms — has hired Jeffrey Schmaltz as a regional sales director in Fort Worth, Texas.
"When hiring a business development professional, we strive to find someone who already understands the complexities associated with the independent advisory model," said Curtis Reed, president of Arbor Point Advisors, in a press release. "Jeff's years of experience working with large, complex advisory firms, and being an advisor himself, make him the perfect addition to our team. His leadership and insight into the ever-changing investment advisory landscape has helped hundreds of firms grow, compete and succeed."
Schmaltz began work in the financial services industry in 1986 as a Fidelity Investments representative in Dallas. He was with Bear Stearns from 1989 to 1995, when he returned to Fidelity Investments. He joined the institutional division of Fidelity in 2001 and became responsible for developing new business relationships with advisors in transition, RIAs, family offices, broker-dealers, financial planners and consulting firms.
Securities America, which is owned by Ladenburg Thalmann (LTS) and has about 1,700 affiliated reps, says Arbor Point's platform allows hybrid advisory firms "to better serve fee-based clients directly with major custodians such as TD Ameritrade, Schwab and Fidelity Institutional, while retaining the ability to seamlessly service their commission-based accounts."
When Securities America announced the formation of Arbor Point, Reed said that RIAs with $50 million to $250 million in client assets can have trouble keeping their overhead costs under control.
"For every advisor with $1 billion in assets looking to form or join an RIA, there are hundreds of firms with $100 million who need the same support to serve their clients," he explained in a press release. "We're not an RIA consolidator. We're a support platform — an RIA 'easy button,' so to speak — for independent advisors who want the freedom to choose a custodial firm and serve their clients the way they want."
Both Securities America and Arbor Point are based in La Vista, Neb.
