Whether you’re aware of it or not, many of your competitors in the CPA tax practice marketplace have built an investment advisory services and financial planning profit center into their business to try to out-compete you by providing a wider array of services to clients under a single coordinated roof. While some larger firms have chosen to build this out in-house, for a smaller firm or sole practitioner with less resources and time it can be difficult or near impossible to even consider this. But there is a solution that can allow you to both compete with the bigger firms for new clients and “close your back door” to prevent existing clients from leaving:
You can be compensated for client referrals to a contracted third party investment advisory firm (a Registered Investment Adviser).
Provided that certain AICPA standards are met and SEC (and state) laws are followed, accountants may receive a portion of the recurring investment advisory and financial planning fees derived from referred clients, while still maintaining the fiduciary role set by the relevant governing bodies and regulators.
If you’d like to learn more about contracting with a Registered Investment Adviser to receive referral compensation, please contact 4Thought Financial Group Inc. Our firm has been working within the established regulatory framework with accountants like you since our inception in 2012, and our founding shareholders have done the same for over two decades. Learn more about partnering with a firm that can guide you through the process of establishing this new profit center by contacting us today.