Breakaway Briefing

A Message to Alex. Brown Advisors: Weighing Your Future Options

🎙️ The Breakaway Briefing: Episode Summary
A Message to Alex. Brown Advisors: Weighing Your Future Options
In this episode, The Gershman Group CEO Roger Gershman provides an urgent message to Alex. Brown advisors whose contracts are nearing their end, urging them to seriously evaluate their career paths amidst the firm's ongoing integration into the wider Raymond James system.
Gershman outlines the three primary choices available to these high-net-worth (HNW) focused advisors, detailing the pros, cons, and financial implications of each option, with a strong emphasis on the value proposition of true independence.
Three Pathways for Alex. Brown Advisors
Roger Gershman presents the following choices for advisors facing a decision point:
1. Stay at the Current Firm (Raymond James/Alex. Brown)
Pro: It's the simplest path ("stay, you know it already"), seamless for clients, and offers familiarity.
Con: It may not be the most lucrative option, and advisors still deal with the same compliance and platform limitations, which may not be robust enough for their sophisticated, HNW client base.
2. Go Independent via Raymond James' Platform (Indie)
Pro: This is a good solution for seamless client account transfers, and the advisor's name is on the door. Advisors can achieve high net operating margins (60-70%) with favorable tax treatment (1099 income). Additionally, Haig Ariyan (former Alex. Brown CEO, now at Redbird) is reportedly interested in taking a large equity stake at a long-term capital gains valuation, offering immediate liquidity and a path to a higher future sale multiple.
Con: The platform may not be as robust as desired, and advisors are still dealing with the same Raymond James compliance department.
3. Full Independence (RIA with Custodian or Other Partners)
Pro: Offers the highest net operating margin (averaging 70%) and the most sophisticated, open-architecture platform using custodians like Schwab, Fidelity, or Pershing. Advisors gain access to competitive solutions like alternative investments, SMA products, and lending solutions. They truly own their business, making it highly valuable in the independent market with high multiples (7x+ of net operating margin).
Con: Requires a more substantial transition than the Raymond James Independent option.
The Equity & Valuation Advantage
The podcast stresses that independence provides an equity opportunity far surpassing typical wirehouse retirement or transition deals:
Tax Benefits: Earnings are classified as 1099 income instead of W2, and equity transactions are taxed at the favorable long-term capital gains rate.
Valuation: In the independent market, an advisor's business is valued highly, with multiples based on net operating margin, allowing for the opportunity to sell a piece now for liquidity and hold the rest for future growth and a higher overall valuation.

Securities Attorney Roggie Dunn on the JPMorgan Contract

🎙️ The Breakaway Briefing: Episode Summary
Securities Attorney Roggie Dunn on the JPMorgan/First Republic Contract
In this critical episode, The Gershman Group CEO Roger Gershman speaks with prominent securities attorney Roggie Dunn to address the major legal concerns of First Republic advisors regarding the employment contract mandated by JPMorgan following the acquisition.
The discussion provides a sobering legal analysis of the "fill or kill" mandate, the enforceability of promissory notes (prom notes), the accelerated bonus payments, and the highly restrictive covenants. Dunn highlights JPMorgan's strategy of using urgency and broad language to gain maximum control over the acquired advisors, potentially devaluing their future earning power if they decide to leave later.
In This Conversation, You Will Learn:
The Promissory Note Risk: The odds of defeating a firm's claim on a prom note in arbitration are long (firms win approximately 92% of the time). While extenuating circumstances like a firm shutdown can be argued, it remains an extremely difficult legal battle.
The Draconian "For Cause" Clause: The JPMorgan contract contains an "extremely broad" clause for termination "for cause," including language that grants the company "sole and absolute discretion." This allows the firm to fire an advisor for nearly any violation and withhold the acceleration of retention bonuses.
The Non-Solicitation Dilemma: JPMorgan's asset purchase includes the non-solicit, which is meant to prevent "human capital drain". The enforceability of this clause—especially for clients the advisor brought over—is ambiguous and highly dependent on state law.
The Urgency Strategy: Roggie Dunn speculates that the lack of transparency and the short 10-day deadline to sign are classic persuasion techniques intended to pressure advisors into signing before they can fully vet the contract or explore outside options.
Impact on Future Valuation: The new restrictive covenants and non-solicitation clauses significantly reduce an advisor's AUM portability and make them less marketable to competing firms, effectively devaluing their book of business if they become unhappy and want to exit.
Recommendation: Advisors must look at their prior contract, attempt to get a deadline extension to seek proper legal advice, and understand that signing the new contract could place "additional shackles" on their business portability.
Meet the Guests
Roggie Dunn (Prominent Securities Attorney) A highly experienced trial lawyer specializing in employment law, partnership, FINRA arbitration, and complex commercial litigation, with extensive experience advising financial advisors on non-compete and employment contract disputes.
 
Roger Gershman (CEO, The Gershman Group) A veteran of 25 years as a financial advisor, Roger now leads a consulting firm that provides expertise on advisor recruiting, transition, and industry trends, often focusing on high-stakes career decisions.

Independence Achieved: The 33-Year Breakaway from Merrill Lynch to mFORCE Capital

🎙️ The Breakaway Briefing: Episode Summary
Independence Achieved: The 33-Year Breakaway from Merrill Lynch to mFORCE Capital
In this episode, The Gershman Group CEO Roger Gershman interviews Bradley Bruce, the founder of mFORCE Capital, who ended an impressive 33-year career at Merrill Lynch to launch his independent RIA. Bruce discusses his career origins as a "cold call cowboy" and how he flourished at Merrill under the former partnership atmosphere, even spending time in management running a small office.
The conversation centers on the profound shift in the industry and Bruce's personal desire to build something he owned. He details his two-year journey of vetting over 50 different platforms (including wirehouses, regionals, and RIAs like Dynasty and Sanctuary), ultimately deciding on the RIA route with the support of Sanctuary. He explains that true independence provided the freedom to evolve from being a "problem solver" (constrained by the old platform) to a "solution finder"—a transformation that has made the business fun again and given him a new, deeper level of empathy for his business-owner clients.
In This Conversation, You Will Learn:
The Long Road to Independence: How Bradley Bruce spent 33 years at Merrill Lynch and the extensive two-year process of vetting over 50 platforms before choosing the independent RIA model.
The MForce Vision: The meaning behind the firm name, which is an acronym for Multi-Family Office Relationship and Client Experience.
The "Institutionalized" Challenge: The difficult but necessary process for his team to "puke up Merrill for 6 months" and shed 33 years of institutional habits to embrace the new language of independence.
Surprising Client Loyalty: The shocking realization that, upon leaving, new relationships sought him out, and institutional clients he assumed he would lose asked to continue working with him.
The CEO Perks of Ownership: The significant tax advantages and financial benefits of being an owner (CEO) versus a highly compensated employee, including the ability to take legitimate business deductions.
Expanded Service Delivery: How being an independent RIA removes the need to "dumb down" solutions and allows him to bring in specialists and partner with banks, M&A advisors, and retirement specialists to provide comprehensive family office services.
Finding the Joy: Bruce’s personal observation that independence has removed the "cranky dad" syndrome and brought back the fun and excitement of building and acquiring new businesses.
Meet the Guests
Bradley Bruce (Founder, mFORCE Capital) Bradley Bruce had an impressive 33-year career at Merrill Lynch before launching mFORCE Capital in 2021. He now leads his independent advisory firm, focused on delivering a comprehensive multi-family office service model to clients.
 
Roger Gershman (CEO, The Gershman Group) A veteran of 25 years as a financial advisor at firms including UBS PWM and Credit Suisse, Roger runs The Gershman Group, a consulting firm specializing in advising top financial advisors on career transitions.

Making The Most Out Of Independence with Roger Gershman & Kevin McCluskey

🎙️ The Breakaway Briefing: Episode Summary
Making The Most Out Of Independence with Roger Gershman & Kevin McCluskey
In this insightful episode, The Gershman Group CEO Roger Gershman speaks with Kevin McCluskey of Castle Island Family Office. Kevin shares his unique journey through multiple transitions: from traditional banks (Wachovia/Wells Fargo) to an investment bank (Deutsche Bank/Alex Brown), then to a major independent broker-dealer (Raymond James IBD), and finally, to launching his own truly independent Registered Investment Advisor (RIA).
Kevin reveals why the Raymond James IBD platform—while a step forward—still felt "captive," prompting his final leap. He details how true independence has unlocked a completely customized, sophisticated "toolbox" for his clients, allowing him to build a true multi-family office platform with in-house CPAs and estate attorneys. The conversation culminates in a powerful message to captive advisors: the fear of losing clients is unfounded, and the financial benefits of true ownership (better cash flow, higher long-term capital gains valuation) vastly outweigh the upfront checks from wirehouses.
In This Conversation, You Will Learn:
The Multi-Step Transition: Kevin's experience moving from wirehouse to IBD to launching his own RIA, and why the final move to full independence was "far less disruptive than we ever anticipated"
The IBD Compromise: Why operating on a major firm's independent platform (like Raymond James IBD) still felt captive due to compliance oversight, product restrictions, and a service platform tailored for the mass affluent market.
The Power of the RIA Model: How true independence allowed him to create a "seamless platform" that integrates sophisticated services, including an in-house CPA and trust and estate attorney, to create a holistic family office experience.
Client Loyalty: Kevin’s core advice: Don't sell yourself short. Clients follow the advisor, not the brand. He notes his clients are now "lunatic fans" of his independent firm.
The Financial Equation: Why, despite receiving no upfront check, the long-term cash flow, inherent tax savings as a business owner, and potential for a long-term capital gains sale make the RIA model financially superior to taking a large wirehouse transition package.
Meet the Guests
Kevin McCluskey (Founder, Castle Island Family Office) Kevin is an experienced financial advisor who successfully navigated the journey from major institutions like Deutsche Bank and Alex Brown, through the independent broker-dealer channel, to ultimately launch his own fully independent, comprehensive family office.
 
Roger Gershman (CEO, The Gershman Group) A former financial advisor who spent 25 years at firms like UBS PWM and Credit Suisse. As CEO of The Gershman Group, he is a leading consultant and expert in financial advisor recruiting, transition, and industry trends.

Industry Titan Goes RIA: Haig Ariyan on the Future of Advisor Independence

🎙️ The Breakaway Briefing: Episode Summary
Industry Titan Goes RIA: Haig Ariyan on the Future of Advisor Independence
In this pivotal episode of The Breakaway Briefing, The Gershman Group CEO Roger Gershman interviews industry titan Haig Ariyan, the former President and CEO of Alex. Brown and Head of Deutsche Bank Wealth Management in the Americas, who has launched Arax Investment Partners with Redbird Capital. Haig details his personal decision to leave the large-firm environment to build a highly flexible and sophisticated Registered Investment Advisor (RIA) ecosystem from the ground up.
The discussion focuses on Haig's advisor-first philosophy, built on decades of experience, and the three distinct partnership models Arax offers to address the needs of top-tier financial advisors. He explains how Arax is bringing the full suite of sophisticated capabilities—from alternative investments to banking and trust services—that advisors are accustomed to in wirehouses, into the independent channel. He also addresses the critical financial incentives, including offering advisors real equity and structuring deals as a long-term capital gains asset purchase.
In This Conversation, You Will Learn:
The Arax Ecosystem & Strategy: How Haig is building a full-service, next-generation RIA platform focused on sophisticated solutions and advisor-centric control.
The Three Partnership Models: The distinct options for top advisors, including W2 equity partners, 1099 lift-out support, and capital partnerships for existing RIAs.
Sophistication in Independence: How Arax ensures its independent advisors have access to products like alternative investments, structured notes, and balance sheet solutions, which were traditionally limited to large banks.
Real Equity and Tax Advantage: Details on Arax's commitment to giving partner teams 30-40% real equity in the business and structuring deals as an asset purchase eligible for long-term capital gains treatment.
Advisor Ownership: Why the fundamental philosophy of Arax is rooted in the belief that the financial advisor owns the client relationship, not the firm.
Meet the Guests
Haig Ariyan (CEO, Arax Investment Partners) Haig is an iconic figure in wealth management, having previously served as President and CEO of Alex. Brown and Head of Deutsche Bank Wealth Management in the Americas. He now leads Arax, a financial services platform backed by Redbird Capital, focused on building a best-in-class independent environment for sophisticated advisors.
 
Roger Gershman (CEO, The Gershman Group) A former financial advisor who spent 25 years at firms like UBS PWM and Credit Suisse. As CEO of The Gershman Group, he is a leading consultant and expert in financial advisor recruiting, transition, and industry trends.

Alternative Investments + Leadership Insights

🎙️ The Breakaway Briefing: Episode Summary
Disrupting Wealth: Rob Sechan on Alternative Investments and Building a Top RIA
In this strategic episode of The Breakaway Briefing, The Gershman Group CEO Roger Gershman sits down with industry disruptor Rob Sechan, CEO and Co-Founder of NewEdge Wealth. They dive deep into the challenges and opportunities within the alternative investment space, revealing why superior boutique strategies often fail to make it onto large wirehouse platforms due to internal economic and political constraints. This conversation provides essential listening for advisors seeking to diversify their offerings, understand the dynamics of a hyper-growth RIA, and navigate the major industry shift toward independence.
 
In This Conversation, You Will Learn:
Alternative Investment Constraints: A detailed look at why the best-performing, boutique investment strategies are often excluded from major banking platforms.
The RIA Growth Blueprint: Rob Sechan's strategy for scaling NewEdge Wealth into one of the fastest-growing RIAs in the nation.
Superior Returns vs. Scale: Understanding the balance between strategies that offer superior risk-adjusted returns and the large-scale model favored by major financial institutions.
The Independent Shift: Expert analysis of the ongoing industry migration and the advantages of creating a successful, disruptive advisory firm.
Meet the Guests
Rob Sechan (CEO, Managing Partner, and Co-Founder of NewEdge Wealth) Rob is an experienced financial expert and entrepreneur who also serves as Co-Managing Partner of NewEdge Capital Group. He has been recognized by both Barron's and Forbes as a Top 100 Financial Advisor.
 
Roger Gershman (CEO, The Gershman Group) A Wall Street veteran who spent twenty-five years as a financial advisor at firms like UBS PWM and Credit Suisse. He now leads his family consulting firm, offering a unique real-life perspective on transition, legal, and economic advice to the nation's largest Barron’s and Forbes teams.

Advisors: Must-Know Legal Insights

🎙️ The Breakaway Briefing: Episode Summary
Protecting Your Interests: Barry R. Lax on Deferred Compensation Legal Battles
The financial advisory industry is currently navigating a surge of legal actions, with major firms like Morgan Stanley, Merrill Lynch, and U.S. Bancorp facing lawsuits related to deferred compensation and ERISA violations.
In this crucial episode of The Breakaway Briefing, The Gershman Group CEO Roger Gershman sits down with legal expert Barry R. Lax, a founding partner of Lax & Neville LLP, to analyze these landmark cases.
Barry provides an in-depth analysis of the complexities and potential pitfalls of deferred compensation plans, detailing the recent victories and defeats of these firms in arbitration and court battles. This is essential listening for any financial advisor who has deferred compensation coming their way and needs to understand how to protect their financial interests.
 
In This Conversation, You Will Learn:
The Lawsuit Landscape: A detailed look at the landmark lawsuits over deferred compensation, including which major wirehouses are currently involved and the core allegations they face.
Understanding ERISA: An explanation of the implications of the Employee Retirement Income Security Act (ERISA) and how its protections (or lack thereof) affect advisor retirement and deferred compensation plans.
Arbitration vs. Court: Barry dissects the legal strategies and outcomes of these cases, shedding light on the critical differences between arbitration and court battles in the financial sector.
Practical Protection: Crucial, practical advice for financial advisors on the steps they can take to understand their deferred compensation agreements and safeguard their own financial future.
acquisitions necessary to take a growing independent practice to the next level of scale.
Meet the Guests
Barry R. Lax (Founding Partner, Lax & Neville LLP): Barry has an extensive background in commercial, employment, and securities litigation, representing clients in state and federal courts, as well as in arbitrations before the Financial Industry Regulatory Authority, Inc. (“FINRA”), the American Arbitration Association (“AAA”), and others. His expertise is crucial for advisors navigating complex legal terrain.
 
Roger Gershman (CEO, The Gershman Group): A Wall Street veteran who spent twenty-five years himself as a financial advisor at firms like UBS PWM and Credit Suisse. Mr. Gershman brings this unique real-life perspective to his family consulting firm, offering unparalleled transition, legal, and economic advice to the nation's largest Barron’s and Forbes teams.

The Powerful Shift to Independence: Tim Bello on the Future of Wealth Management

🎙️ The Breakaway Briefing: Episode Summary
The Powerful Shift to Independence: Tim Bello on the Future of Wealth Management
The financial services industry is in constant flux, and top-tier advisors are increasingly seeking true ownership, scale, and strategic alignment to future-proof their practices.
In this essential episode of The Breakaway Briefing, The Gershman Group CEO Roger Gershman sits down with industry veteran Tim Bello, Co-Founder and Managing Partner at Merchant Investment Management.
They dive deep into the fundamental drivers behind the rapid shift toward independence, discussing what is causing leading advisory teams to leave traditional wirehouses and broker-dealers for the flexibility and equity offered by independent platforms. Tim provides an unparalleled view of the current landscape and how firms like Merchant are acting as a strategic 'Force Multiplier' for next-generation RIAs.
 
In This Conversation, You Will Learn:
The Independence Mandate: They discuss the foundational reasons why top advisors are demanding greater control, higher payout structures, and the ability to build true enterprise value through their own practices.
The Merchant Strategy: Tim reveals how Merchant Investment Management uses a unique, strategic approach to partner with, and provide capital to, high-growth, innovative RIAs, acting as a crucial ecosystem for compound growth and resource sharing.
Advisor Identification and Integration: Insights into how Merchant identifies advisors and platforms with the greatest potential for long-term growth and how they integrate new partners into their network.
Scaling the Modern RIA: Tim provides a macro view of the market, focusing on the infrastructure, technology, and strategic acquisitions necessary to take a growing independent practice to the next level of scale.
 
Meet the Guests
Tim Bello (Co-Founder & Managing Partner, Merchant Investment Management): Tim is a Co-Founder and Managing Partner at Merchant Investment Management, where he guides overall corporate strategy and key growth initiatives across their portfolio of partner firms. He previously served as an early-stage partner at Dynasty Financial Partners and was the Head of Global Platforms at SkyBridge Capital, giving him a critical perspective on evolving advisory models.
 
Roger Gershman (CEO, The Gershman Group): A Wall Street veteran who spent twenty-five years himself as a financial advisor at firms like UBS PWM and Credit Suisse. Mr. Gershman brings this unique real-life perspective to his family consulting firm, offering unparalleled transition, legal, and economic advice to the nation's largest Barron’s and Forbes teams.

Building The Future of Wealth Management - With Stan Gregor

🎙️ The Breakaway Briefing: Episode Summary
Building The Future of Wealth Management - With Stan Gregor
 
The industry is undergoing a foundational shift: the future belongs to advisors who prioritize true partnership, ownership, and independence.
In this essential episode of The Breakaway Briefing, The Gershman Group CEO Roger Gershman sits down with Stan Gregor, CEO of Summit. Stan, who spent nearly 40 years navigating the limitations of major firms like Wells Fargo and Citi, reveals his radical vision for empowering advisors through the Summit platform—a firm that has skyrocketed from $3B to nearly $25B in assets since 2020.1
 
They dive into the evolution of Summit and why its model is built for scalable, value-driven expansion.
 
In This Conversation, You Will Learn:
From Advisor to Architect: Stan recounts the frustrations with traditional "big-bank limitations" that spurred his move from running his own book to creating a next-generation platform.
Partnership Over Promissory Notes: They dissect Summit’s innovative, equity-based model that treats advisor compensation as an investment and a share of ownership—not a retention trap defined by front-end bonuses.
The Technology Ecosystem: How Summit's infrastructure emphasizes seamless integrations (SSO, DocuSign, eMoney, HiddenLevers) to ensure technology empowers the advisor, rather than burdening the practice.
The Merchant Force Multiplier: Stan underscores Summit's strategic alignment with the Merchant Investment Management ecosystem and how this network effect drives compound growth that transcends the limits of an individual practice.
Meet the Guests
Stan Gregor (CEO, Summit): Stan brings nearly 40 years of experience in wealth management, having led advisor practices and senior roles across major firms like Citi and Wells Fargo. His journey reflects a deep frustration with traditional models and a radical vision for empowering advisors through partnership, ownership, and innovation at Summit.
Roger Gershman (CEO, The Gershman Group): A Wall Street veteran who spent twenty-five years himself as a financial advisor at firms like UBS PWM and Credit Suisse. Mr. Gershman brings this unique real-life perspective to his family consulting firm, offering unparalleled transition, legal, and economic advice to the nation's largest Barron’s and Forbes teams.