Running your financial advisory practice has never been more challenging, even for the most experienced financial professionals. Given today’s increased compliance scrutiny, rapid technological advancements, and operational requirements, managing your practice while delivering competitive returns can be overwhelming. It can also be costly to perform all these functions yourself or with a smaller support team.
Evolution Financial Advisors provides OSJ services to successful independent financial professionals in greater New York and nationwide. We focus on networking, mentoring, white-glove compliance, marketing, and operational support.
In this article, we’ll compare various services you’d need to perform yourself, by your team, or outsource to a highly regarded OSJ (Office of Supervisory Jurisdiction). You need a solution that offers comprehensive services that streamline your operations, don’t cost you an arm and a leg, and empower you to provide unmatched services to current clients and add new clients.
Understanding the Scope of Required Services for Independent Financial Professionals
Running a financial advisory business demands skill, knowledge, experience, and time. You’ll need to be adept in financial planning and investment management while staying current with industry regulations, technology, operations, and marketing trends.
Below is a list of functions that should be included in your assessment of whether or not you should manage these services in-house or outsource these tasks to a team of specialized professionals. We’ll also look at how an OSJ can be utilized for each of these functions/services.
FYI, the costs of professionals include salary, taxes, benefits, bonuses, training, and support.
Compliance and Regulatory Oversight:
Managing compliance in-house for your financial advisory firm requires dedicated staff who are well-versed in regulatory requirements, providing periodic training, and managing robust monitoring systems. The average cost for an employee to handle compliance can range from $70,000 to $120,000 annually, depending on experience, location, and level of responsibility.
When you partner with an OSJ, they can provide you with:
- In-house Compliance Officers
- Legal Advisors
- Internal audit professionals
Broker-Dealer Support
Managing broker/dealer operations in-house for your financial advisory firm requires a dedicated registered principal who can efficiently handle regulatory requirements, trade execution, reporting, and client documentation. The average cost for hiring such an employee typically ranges from $85,000 to $135,000 annually, depending on experience, location, and practice size.
When you partner with an OSJ, they can provide you with:
- Efficient Trading and Brokerage Support
- Registered Professionals
- Trade Execution and Settlement Services
Client Relationship Management
Managing client relationships in-house for your financial advisory firm requires dedicated personnel who can effectively utilize CRM software to maintain and enhance client interactions. The cost of hiring an employee to manage client relationships, including CRM, ranges from $50,000 to $80,000 per year, depending on experience and location.
When you partner with an OSJ, they can provide you with:
- Client Service Representatives
- CRM Software Management
Marketing and Business Development
Managing your financial advisory firm’s marketing and business development in-house involves hiring skilled professionals to create and execute strategies across digital and traditional platforms. The average cost for an employee to manage these efforts typically ranges from $100,000 (Fractional CMO) to $250,000 per year (full-time CMO), depending on experience and the scope of their responsibilities.
When you partner with an OSJ, they can provide you with:
- Effective outreach and client acquisition strategies
- Access to Marketing Professionals Who Can Guide You on Best Practices
- Digital marketing support
Technology and IT Support
Managing technology and providing IT support in-house for your financial advisory firm requires dedicated IT staff to maintain systems, ensure cybersecurity, and support day-to-day technology needs. The average cost for an IT support employee is typically between $75,000 and $100,000 per year, depending on their expertise and the complexity of your firm’s technology infrastructure.
When you partner with an OSJ, they can provide you with:
- IT and Cybersecurity Support Staff
- Technology Training and Support
Research and Analysis
Conducting market research and analysis in-house for your financial advisory firm requires full- or part-time analysts who gather data, interpret market trends, and provide actionable insights. The average cost for a full-time employee in this role is typically between $80,000 and $120,000 per year, depending on their expertise and the complexity of the research required.
When you partner with an OSJ, they can provide you with:
- Market Analysts
- Research Associates
Training and Development
Conducting training and staff development in-house for your financial advisory firm involves hiring a professional dedicated to creating and implementing programs that enhance employee skills and knowledge. The average cost for an employee managing this role is usually between $50,000 and $75,000 per year, depending on their experience, whether they work full-time or part-time, and the breadth of the training programs offered.
When you partner with an OSJ, they can provide you with:
- Continuous Learning
- Training Coordinators
- Professional Development Coaches
Legal Services
Providing legal assistance in-house for your financial advisory firm involves hiring a legal expert to handle contracts, ensure regulatory compliance, and offer general legal counsel. The average cost for a full-time legal professional ranges from $120,000 to $200,000 per year or more, depending on their experience and the complexity of your legal needs.
When you partner with an OSJ, they can provide you with:
- Contractual and Client Agreement Support
- Access/Referrals to Legal Advisors
The OSJ Advantage
Now that we’ve looked at various services and the rough costs associated with hiring these services in-house (full or part-time), the next question you need to ask yourself is, “Do I have the time and knowledge to manage all of this myself, or should I partner with an OSJ for comprehensive services bundled into one competitive fee?
The benefits of partnering with an OSJ like Evolution Financial Advisors include:
- Cost Efficiency: Pooling resources across multiple practices allows OSJs to offer services at a fraction of the cost of maintaining an in-house team for each function.
- Expertise on Demand: Leverage specialized knowledge and experience without requiring extensive hiring, training, or support.
- Regulatory Compliance: With dedicated legal and compliance experts, OSJs minimize the risk of violations and fines.
- Scalability: Easily scale operations up or down without the constraints of fixed staffing costs.
- Focus on Core Competencies: This can free up your time to focus on planning, investment, risk management, and growth strategy.
Evolution Financial Advisors provides bundled services and is committed to excellence when they empower financial advisors with tools and services that foster growth and client satisfaction. This partnership allows advisors to excel in their practice with the backing of robust support systems, ensuring a competitive edge in the financial services industry.
Ready to learn more about Evolution FA’s OSJ services? Let’s connect.
