Merit Unveils Independent Advisor Affiliation Model

Merit Financial Advisors, an Atlanta-based wealth management firm with $10 billion in assets under management, has introduced an affiliation model for advisors who want to maintain their independence while gaining the perks of a larger firm.

The model, Merit Amplify, provides financial advisors and their firms with an additional way to collaborate with Merit outside of traditional mergers and acquisitions, the company said.

The new product will let advisors keep control of their businesses while Merit helps with investment management, technology, compliance, and succession planning. Advisors working with Merit Amplify will be 1099 independent contractors for Merit rather than W-2 employees.

Merit Amplify advisors will also form a strategic brokerage arrangement, allowing affiliate businesses to use Merit’s broker-dealer, LPL Financial.

“Think of it as a form of courting, a time for a firm owner to ‘date’ a prospective partner before ‘marrying’ and making the decision to merge or be acquired,” said Rick Kent, CEO at Merit.

Merit Amplify also provides firms with the chance to opt for additional services, including investment management, advanced technology offerings, and human resource support, for at an additional cost.

Merit’s model is one of several 1099 affiliation models on the market. Steward Partners, a hybrid registered investment advisor, debuted a 1099 affiliate model in 2019. Additionally, Mariner Wealth Advisors introduced Mariner Platform Solutions, a 1099 channel, in 2020.