Strategy
US Financial Advisory Network Uses Big Name for Fee-Only Recruitment Drive
Last year’s chairman of the United States Financial Planning Association and one of the biggest names in financial planning in the country, ...
Last year’s chairman of the United States Financial Planning Association and one of the biggest names in financial planning in the country, James Barnash, has joined Ameriprise Financial, a 13,000 strong national financial advisory network, to spearhead the group’s fee-only advisor recruitment drive.
Mr Barnash, who was the 2006 US FPA chairman and the 2005 Association president, told WealthBriefing that Ameriprise planned to as much as triple its advisor numbers in the next three to five years through recruitment of individuals and groups of advisers, as well as possibly through acquisitions.
Mr Barnash left rival financial advisory network, Lincoln Financial Advisors, to join Ameriprise this month.
Ameriprise currently comprises 10,500 advisors that are a combination of employees and franchise operators, as well as around 2,500 representatives of its broker-dealer subsidiary, Securities America.
Mr Barnash said the future of advice delivery in the US is fee-based.
“I will concentrate on filling up the fee-only employed advisor channel, that’s my first priority,” said Barnash.
“We are targeting practicing fee-based advisors as well as those who are interested in learning and transitioning to fee-based advice.”
According to an estimate by Boston-based research firm Cerulli Associates, at the end of 2005, approximately 49 per cent of advisors in the US generated revenues through the use of a fee-based pricing structure, an increase from 34 per cent since 2002.
Mr Barnash has been a member of the national board of directors for the US Financial Planning Association since 2001.
Born and raised in the city of Chicago in the state of Illinois, also where he is predominantly based for his new role, Mr Barnash said that’s where he will start recruiting.
“I have made numerous contacts throughout the country through the association and I’ll be using those contacts to attract new talent to the group, both individuals and groups of advisors,” he said.