(UX Wealth Partners) Many advisors are turning to outsourcing to free up time to work with clients on long-term goals and objectives, to address complex challenges, and strengthen relationships. The more time advisors can spend gaining new clients, while nurturing and serving existing clients, the more opportunity they have to grow.
UX Wealth Partners acts as an Outsourced Agent (OA), rather than a Turnkey Asset Management Provider (TAMP) for several different reasons...
- Control, Flexibility and Ownership: Allows firms to outsource specific operations while maintaining full control and ownership of their book of business. Advisors retain 100% ownership of their RIA firm and can terminate the OA relationship easily if needed, without additional client paperwork.
- Seamless Integration: Client statements only display the advisor firm's name, not the OA’s.
- Focus on Priorities: By outsourcing tasks like billing and trading, advisors can focus on business growth, recruitment, and client relationship management without being bogged down by operational details.
By hiring UX Wealth Partners, the hiring firm can outsource certain RIA firm operations functions, while still maintaining full control and ownership of the firm’s book of business. The hiring firm no longer has to worry about some aspects of running the RIA that can be both time consuming and overwhelming. While the RIA still maintains full ownership of the firm’s book of business, by outsourcing certain tasks such as billing and trading, the firm can spend more time on their top priorities such as growing their business, recruiting employees, or strengthening existing client relationships, with less time spent on managing the details behind the scenes.
An OA is hired by the RIA to perform back office, billing, technical and/or non-discretionary trading execution functions on behalf of the hiring firm (RIA). An OA cannot perform discretionary asset management functions, such as selecting investments. UX Wealth Partners believes investment decisions are decided upon between the advisor and the client. UX Wealth Partners simply carryout instructions placed by the hiring firm. The end-client hires the advisor; the hiring firm hires the OA via paperwork between the hiring firm, OA, and custodian. The client does not have to get involved!
It’s a quick and simple process to establish the firm-to-firm or OA relationship at the custodian level, without involving the end-client. What’s also beneficial about this OA arrangement is client signed paperwork is never required. Whereas with a TAMP relationship, the end-client has to hire the TAMP via signed paperwork and give the TAMP Power of Attorney (POA) over their account(s). Furthermore, the TAMP has discretion over the end-client accounts.
When hiring a TAMP, this process is quite tedious and cumbersome as the custodian requires new paperwork for every client account. Lastly, on the end-client’s monthly custodial statement, when working with an OA, only the hiring firm/ advisor firm’s name appears. However, when working with a TAMP, the TAMP’s name appears on client statements, in addition to the advisor firm name. Essentially, the OA is behind the scenes as end-client relationship is always with the advisor.
Utilizing an OA like UX Wealth Partners provides RIAs with the operational support needed to accelerate growth and efficiency. Advisors can maintain control over their firm while focusing on their core competencies, ultimately fostering stronger client relationships and opening doors to new opportunities. UX Wealth Partners firmly believe in the advisor – client relationship and are simply here to act as an extension of your firm.
Schedule a call today to learn more about how UX Wealth partners can help you accelerate growth and efficiency.
