XY Planning Network has announced the launch of a new registered investment advisor corporate affiliation model, dubbed Sapphire, featuring no asset minimums and a pricing structure of $1,500 per month and 20% of the advisor's revenue.
Previewing the offering during an interview with ThinkAdvisor, XYPN co-founders Michael Kitces and Alan Moore said Sapphire will provide fee-only advisors with advanced technology, support and resources without the constraints or fees traditionally associated with joining a corporate RIA or broker-dealer.
"We created Sapphire because many of our members asked for this option," Moore said. "Too often, advisors strike out on their own so they can run their businesses how they want to — but then they join a corporate RIA only to end up back at square one, many times with even less control."
Advisors seeking independence said they wanted a program that would allow them to focus on clients, Kitces and Moore explained, not compliance and regulations.
With the addition of Sapphire, fee-for-service planners have two paths to independence in partnership with XYPN. The new path complements the approach XYPN has crafted over the last decade via its Emerald platform, which supports nearly 2,000 independent financial advisors.
Moore and Kitces said they anticipate Sapphire's initial growth to be fueled by Emerald users who want to access even more support in compliance and technology management. Over time, outside advisors are also expected to join via Sapphire, but the duo said they don't see the new corporate RIA platform as a foray into the advisor industry's traditional recruiting battle.
Part of the reason why is that, unlike other RIA affiliation models, Sapphire members own their business, clients and data — and they can transition with 100% of their revenue to another platform at any time. Additionally, as independent contractors and not W-2 employees, Sapphire members control how they operate their businesses, Kitces and Moore explained.
"Whichever one advisors choose [between Emerald and Sapphire], they can have the confidence of knowing that they are in control of their time and businesses," Moore said.
Following a successful pilot program, XYPN is now onboarding two to three advisors monthly and expects to transition roughly 50 advisors by the end of 2025 while also building out new service offerings across marketing, success coaching and community engagement.
What's Different About Sapphire
Because XYPN Sapphire is an SEC-registered investment advisor, transitioning practices can be registered in days, bypassing the state-level registration process required for advisors operating their own RIAs.
