The Philadelphia, PA-based boutique financial planning firm McAdam has formed a new RIA entity serving its fee-only independent advisors and their clients.

The Philadelphia, PA-based boutique financial planning firm McAdam has formed a new RIA entity serving its fee-only independent advisors and their clients.

Charles Schwab will provide custodial services, while the firm has partnered with Purshe Kaplan Sterling Investments to serve as a full-service broker-dealer (the latter was previously provided by  Voya Financial Advisors, formerly ING Financial Partners.) 

“Back in 2008, ING was the ideal foundational partner for us,” said Michael McAdam, founder and chief executive. “But today we see ourselves as an entirely new breed of financial services firm...”

He said the move allows the firm to make key operational improvements to “virtually every part of our business.”

It also reflects the growing trend of “traditional firms” becoming hybrid RIAs, typically offering fee-based investment accounts and broad financial planning services. For example, the number of wealth managers who registered as investment advisors grew at an annual rate of 8 per cent between 2004 and 2012, while brokers at traditional firms fell by an average of 1.2 per cent, according to data from the research firm Cerulli Associates.

As part of its launch, McAdam plans to introduce a new identity, website, advisor and client portals, as well as dashboards and a “national targeted marketing platform.”

“We see this as a critical part of our evolution as a leader for both clients and advisors in the personal financial services space,” McAdam said. “Launching this fee and commission RIA hybrid model is the final step toward true open architecture.” 

The McAdam network consists of around 200 advisors operating out of six offices in Philadelphia, PA, Chicago, IL, Boston, MA, Tysons Corner, VA, Jersey City, NJ, and St Petersburg, FL.