Francis Hoey, Hoey Investments

Submitted by aesha.shah on September 18, 2017

[Francis Hoey
Hoey Investments]

I've made two transitions of the business. I made a transition from a major brokerage house to a small broker-dealer, which is very difficult. And then I made the transition from a small broker-dealer to the RIA platform that Schwab supports.

The transition from a small broker-dealer to Schwab's platform was the easiest, by far. So we were able to convert 100% of our clients in less than three-and-a-half weeks.

Technology was an issue when you deal with any brokerage house either big or small, because the technology is really constructed for the masses, not for your particular ideology, or your particular asset allocation model, or your particular way that you invest money. One of the great things about the RIA model is that you get to pick and choose the different technology packages that you want to use for your clients that best fits your clients' needs. Schwab's technology has been fantastic. It's far exceeded my expectations.

One of the biggest reasons why I probably didn't make this transition earlier is because I was, you know, very concerned how am I going to do compliance. Compliance is just another component of the business that you could outsource in a very cost-efficient way. 

There was a lot of restrictions on my ability to communicate with clients with the broker-dealer. The biggest contrast between the RIA hybrid model and the broker-dealer model is very simply that if you think that it's something that the client should need to read or very timely, you can go ahead and send it out, making sure that it's compliant within your policies and procedures, so you can actually educate the client as much as possible in a very timely manner.

I feel that the RIA model is a better economic model for… not only for the client, but also for myself, because the costs are known so you can make decisions on the portfolios, there's no hidden costs coming in from the outside that you didn't plan on.

What I really was looking for is the best possible model to service clients' needs. The only thing I'm upset about is I didn't do it sooner.

[Charles Schwab Advisor Services
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Third party firms are not affiliated with or employed by Charles Schwab & Co., Inc.]

"One of the great things about the RIA model is you get to pick and choose the different technology packages that best fit your clients' needs" 

- Francis Hoey, Hoey Investments

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