Hybrid FAQ’s
What is the Hybrid Model?
The Hybrid model is a combination of commission and fee based business. It is one of the fastest growing sectors of financial advisors in the US. This model is particularly of interest to financial professionals who have both commission based clients as well as fee based clients.
What are the advantages?
The model for hybrid brokers and advisors allows for financial professionals to engage in a relationship with their client based on their growing needs by allowing the client to choose from either commissions or management fees. This model also allows financial professionals to charge accordingly for long or short term plans taking into consideration the rebalancing of the client’s portfolio and staying within their financial goals and objectives. The plan allows financial professionals to maintain different types of clientele including the active trader, long term investor, retiree, or the simple investors.
What are the requirements?
The minimum requirement to operate under the Hybrid Model is a Series 7 and 66 or 65 licenses. Your commission-based business would be conducted with your Series 7 license and you fee based through your Series 66 or 65 businesses either through the WallStreet*E Investment Advisors or your own established corporate RIA.
How do I manage both commission and fee based models?
Managing your Hybrid business is streamlined using our turnkey proprietary platform that allows you to conduct both sides of the Hybrid Model (Commission and Fee Based). This avoids having to use multiple technology platforms with different screens, layouts and business processes and consolidate them into one seamless management process. Additionally, we have developed a consultative approach that allows us to help the financial professional determine which model best suits their client needs. We also assure our financial professionals that they can maintain their existing relationship with WallStree*E should their business needs change or evolve by providing them a broad range of business model solutions.
What are my compliance requirements under the Hybrid Model?
Under the Hybrid Model your commission based business compliance is managed by WallStreet*E Financial Services, Inc. If the fee based business is run through WallStreet*E Investment Advisors, then the compliance is managed by WallStreet*E; however if the fee based business is done through your own registered investment advisory firm, then your RIA will be responsible for managing the compliance.
What are the requirements of the Hybrid Model?
The minimum requirement to operate under the Hybrid Model is a Series 7 and 66 or 65 licenses. Your commission-based business would be conducted with your Series 7 license and you fee based through your Series 66 or 65 businesses either through the WallStreet*E Investment Advisors or your own established corporate RIA.
For more information on how WallStreet*E can support your Hybrid Business please call us at 1-800-843-3340.
