Recognized for bringing impactful solutions to financial advisors, firm’s president & founding partner continues transforming the industry through thought leadership and education. 

CLEVELAND, Ohio, Dec. 14, 2023 – C2P, an organization designed to simplify financial planning for advisors and the clients they serve, is pleased to announce that the company’s President and Founding Partner, Dave Alison, CFP^®, EA, BPC, has been named a 2023 ThinkAdvisor LUMINARIES award winner for the Thought Leadership and Education category. Now in its third year, the LUMINARIES awards program highlights those top-performing industry participants—both firms and individuals—that produce meaningful results through efforts that matter most to financial advisors.

Alison’s most recent innovations include creating and hosting a broad range of live, on-demand, and virtual training resources for advisors, such as The Tax Management Journey^®, a two-day training designed to expand an advisor’s business by helping them add tax management services to their business offerings. He is consistently innovating and producing actionable and compelling content for advisors and consumers alike, covering everything from proven and repeatable turnkey processes for best-interest tax management and financial planning to market updates, marketing strategies, and operations systems.

“I am incredibly honored by this recognition because, as an advisor first and foremost, I truly understand the challenges advisors face as they aim to grow and scale their businesses. That is why I am dedicated to creating the tools and resources advisors need to turn these challenges into opportunities,” said Alison. “This award further validates that our efforts to provide actionable, easy-to-follow, proven processes are resonating with professionals throughout the industry. But this recognition isn’t a finish line; it’s a checkpoint. It’s a reminder that we’re here to keep pushing boundaries and ensure financial advisors aren’t just keeping up but staying ahead.”

This most recent accomplishment for Alison comes on the heels of him recently being named to InvestmentNews’ 2023 40 Under 40 list. The annual awards program celebrates 40 remarkable young professionals in the financial advice industry for their leadership and accomplishments, placing them among an elite class of role models and rising stars.

Earlier this year, C2P and its Chief Marketing Officer, Matt Seitz, were also named ThinkAdvisor 2023 LUMINARIES finalists in their respective categories.

Seitz was named a finalist for the Executive Leadership category for individuals after recently creating a seminar and eBook to educate advisors on the new SEC Marketing Rule, covering important details like selecting and soliciting client feedback, required disclosures, avoiding fines, best practices, as well as the pros and cons and overall impact on one’s practice. His innovative actions continuously help C2P and its advisors remain competitive as he regularly seeks opportunities to enhance their reach through marketing and education.

C2P was named a finalist for the Thought Leadership & Education category for firms after it recently launched its Advisor Career Path and Compensation Program as a critical turnkey resource for succession planning and cultivating the next generation of advisors. The live two-day virtual training course is aimed at helping advisors recruit, reward, and retain top talent. It is designed for advisors who are the sole rainmaker of their practice and are looking to build a self-sustaining business.

C2P’s Founder and CEO, Jason Smith, CEP^®, BPC, and best-selling author, will soon release his highly anticipated second book, The Rainmaker Multiplier: How to Create a Self-Sustaining, Scalable Financial Planning Business. Coming in the spring of 2024, this book will expand upon these award-winning strategies to provide advisors with a comprehensive guide for how to build a self-sustaining practice. To learn more and sign up for updates about the book release, visit www.RMMBook.com.

The LUMINARIES Class of 2023 Finalists were reviewed by ThinkAdvisor’s distinguished and diverse panel of 17 judges from across the advice industry. Read the full methodology!

About C2P: C2P is a holding company comprised of specialized platforms, each designed to simplify holistic financial planning for advisors and the clients they serve. Driven to provide products and solutions in the best interest of every client, C2P offers education, training, resources, and tools to meet a client’s unique financial situation, along with access to an array of investment and insurance vehicles to help advisors accomplish their goals. C2P is committed to upholding fiduciary best practices and raising industry standards by offering a higher quality of financial planning services to families worldwide. For more information, visit www.C2PEnterprises.com.

Investment advisory services are provided by C2P Capital Advisory Group, LLC d/b/a Prosperity Capital Advisors, LLC (“PCA”), an investment adviser federally registered with the Securities and Exchange Commission (SEC). 

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The U.S. Department of Labor (DOL) recently proposed a new fiduciary rule on October 31,2023 that attempts to redefine the criteria used to identify fiduciary investment advice. The proposal’s goal is to help ensure that financial professionals prioritize their client’s best interests in retirement planning over their own financial gain.

The Retirement Security Rule expands the definition of investment advice fiduciary, making more people subject to the Employee Retirement Income Security Act’s (ERISA) fiduciary standards. It also proposed amendments to prohibited transaction exemptions.

Because of the possible impacts if the rule is passed, here are some important things  financial advisors need to know:

The Current Status as of November 2023

The Retirement Security Rule is open for comments until January 2, 2024, with a public hearing taking place on December 12-13, 2023.

In November, the U.S. House of Representatives passed a vote to add an amendment to a bill. This amendment aims to kill this rule proposed by the DOL. However, that bill has not passed the Senate and it’s possible it never will. Even if the Senate ratified it and the President signed it, it still has a long road ahead.

But, if everything goes according to the DOL’s plan, the proposed rule could be implemented as early as March 2024.

Proposed New Fiduciary Test

The proposed rule would modify the requirements of the Five-Part Test from 1975. This modification would make the requirements vague to describe professionals in the retirement planning space.

Under this new rule, if you meet the criteria in the following 3-part test, ERISA considers you a fiduciary and you must follow its standards.

1. Provides investment advice or makes an investment recommendation to a plan participant or IRA owner.
2. Receive a fee or other compensation for that advice.
3. Provide that advice on a regular basis as part of your business.

This new proposal would then also include professionals performing rollovers as fiduciaries and hold them to those standards.

Key changes to the proposed fiduciary rule

These key changes in the retirement security rule aim to enhance retirement savings and protect the interests of investors:

• Expanding who is considered a fiduciary: The proposed rule broadens the definition of who is considered an investment advice fiduciary, especially in relation to rollover advice.

• New disclosure requirements: There are extensive disclosure requirements, including acknowledging fiduciary status, describing services and products, disclosing commissions in both percentage and dollar amounts, and providing a detailed rollover assessment to clients.
• Supervision requirements for insurance companies: Insurance companies will have to conduct thorough reviews of transactions, ensure compliance with impartial conduct standards, evaluate producers annually, and conduct retrospective reviews. They must also report instances of non-compliance and may face disqualification for consistent violations.

• Restrictions on incentives: The proposed rule may limit compensation and incentives for financial professionals. It restricts things like bonuses, quotas, and other incentives that could influence advice.

• Self-correction and reporting: There are provisions for self-correction of violations and reporting violations to both the insurance company and the Department of Labor.

Potential Implications of New Retirement Security Rule

While the fate of the DOL’s Retirement Security Rule remains uncertain, it’s wise to consider its possible implications for advisors and their client’s sake:

1. Fiduciary Responsibilities: The proposed rule aims to modify the criteria for identifying fiduciary investment advice. If enacted, this could redefine the responsibilities and obligations of financial advisors when providing investment advice.

 2. Changes to Prohibited Transaction Exemptions: The rule also seeks substantial changes to existing prohibited transaction exemptions outlined in the Employee Retirement Income Security Act (ERISA) and the tax code. Advisors may need to adapt their strategies and practices to align with these alterations.

3. Client Impact: Ultimately, any regulatory changes can affect clients’ retirement plans, investment options, and overall financial security. Being well-versed in the potential impacts of the rule will help advisors provide informed guidance to their clients.

4. Compensation changes: changes to PTE 84-24 and PTE 2020-02 in the proposed rule would also allow a fiduciary to be paid for recommending and advising clients on fixed and fixed indexed annuities.

Stay Informed and Prepared

While the future with the DOL’s Retirement Security Rule remains to be seen, proactive financial advisors should stay informed and prepared. Regulatory changes can significantly impact both industry practices and the financial well-being of clients.

Monitoring updates and remaining adaptable in strategy are key steps to ensure the best outcomes for both advisors and their clients.

In the world of finance, change is constant. C2P can help you navigate these changes with knowledge, foresight, and tools to stay ahead in the financial services industry and continue to put your client’s best interest first.

Subscribe to the C2P podcasts to stay up to date on all the latest news and insights from industry leaders!

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Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Sources

1. https://www.proskauer.com/blog/game-of-tomes-a-guide-to-the-dols-retirement-security-rule-proposal#:~:text=Very%20generally%20speaking%2C%20the%20Proposed,%2Ddealing%20prohibited%20transaction%20rules).
2. https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/retirement-security-proposed-rule-and-proposed-amendments-to-class-pte-for-investment-advice-fiduciaries
3. https://www.dol.gov/newsroom/releases/ebsa/ebsa20231031
4. https://www.klgates.com/Here-We-Go-Again-DOL-Proposes-New-Fiduciary-Rule-11-8-2023#:~:text=Under%20the%20five%2Dpart%20test,on%20a%20regular%20basis%20(3)

Scaling up and securing your practice’s future begins with clear career paths and compensation models

The financial services industry has changed a lot in the last decade, with many successful firms committing to big organizational shifts. No longer the realm of small, siloed operations, today’s productive and scalable firms are becoming more professionalized and structured.

And as the baby boomer generation, who mostly own these firms, nears retirement, succession planning for the next generation of advisors must be part of the structure of a financial advisory practice that wants to exist long beyond its founders’ time in the first chair.

From Founder-Led to Function-Focused

Traditionally, founders often juggled multiple roles, essentially handling everything from face-to-face client relations to back-office functions to run the business. But modern advisory firms are breaking down these responsibilities into specialized roles across:

• Firm leadership

• Business development

• Client service support

• Client-facing advisor functions

This role specialization allows to excel in their respective domains, resulting in more efficient operations and enhanced client experiences. Learn more about how top RIAs structure their teams for success.

The Rise of Role Specialization in Financial Firms

C-suite and dedicated management roles within a financial advisory firm are becoming more common when restructuring and have key benefits to a practice. These professionals play a pivotal role in driving the firm’s growth but are not directly client-facing.

Firms are becoming increasingly strategic in how they fill these roles, whether through internal promotions, external hires, or even candidates from outside the financial industry.

Nationally recognized financial advisor and author, Jason L Smith, CEP®, BPC, shared some key traits he looks for when recruiting talent in an episode of the Rainmaker Multiplier On- Demand podcast.

Smith believes that future financial advisors can be successful regardless of their industry or experience level if they have a commitment to hard work and a clear career path to follow.

In the same podcast, he discussed finding skilled people and identified shared qualities that often indicate future success. Athletes, for example, make excellent future high-performing advisors. They are typically individualistic and have a strong desire to continually raise the bar for themselves.

“It’s that high utility, that resourcefulness, and that high individualism. Those seem to be the pinnacles for what drives somebody to be a sales superstar.”

Creating specialized roles optimizes operations and reduces the burden of wearing multiple hats, allowing team members to focus on their core responsibilities.

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Building Career Paths and Compensation Structures

To facilitate teamwork, the establishment of clear career paths and compensation structures has become vital to invest in and recruit team members who are a good fit for a firm long-term.

C2P’s Advisor Career Path & Compensation Model

As founder and CEO of JL Smith Wealth & Tax Planning, and a planning-first RIA, Prosperity Capital Advisors, Smith believes that giving skilled people a way to buy into your firm and become a practicing partner provides an incentive to become a top producer.

That’s why he developed The Advisor Career Path & Compensation Model, a facet of our Teamwork Movement — to help advisors:

• Recruit
• Reward
• Retain top talent

The program is designed for advisors who are the sole rainmaker of their practice and are looking to build a self-sustaining business.

To support the idea of specialization in a practice’s structure, this career path model breaks the advisory into five distinct rungs:

• Client Service Advisor: Entry-level backstage position for client administration and new business handling.
• Paraplanner: A transitional role for backstage team members to learn and build financial plans.
• Advisor: Frontstage and client-facing role supporting Lead Advisors and Practicing Partners.
• Lead Advisor: Responsible for serving valuable clients and business development; mentors lower-rung team members.
• Practicing Partner: A leadership role with ownership and a stake in the firm’s strategy; drives organizational growth.

This five-rung approach assists employees and supervisors in career advancement by providing clear goals and methods to track progress. It helps them understand how to move forward in their careers and know what is expected of them.

It’s important to note that not everyone will progress through all rungs of the ladder, and that’s perfectly fine. Employees have different strengths and interests, and so this career path allows for various career trajectories. The key is to find the right fit where each team member can thrive.

 

Securing an Advisory Firm’s Future with Succession Planning

Many financial advisor practices lack robust succession plans, instead relying heavily on owner-advisors. But if an aging advisor wants or needs to step away from the day-to-day operations, a firm without a proper plan in place leaves support staff scrambling. This can also sometimes mean the business doesn’t survive past its founder’s direct involvement.

While mergers and acquisitions are common exit paths, they don’t guarantee business continuity. In fact, many firms are now navigating M&A with succession in mind, recognizing the need to align ownership transitions with long-term planning.

A stronger approach includes:

• Developing internal successors
• Empowering them through structured career ladders like the Advisor Career Path model

Let's Secure Your Firm's Future

Balancing Scale and Personalized Service

While scaling is essential for efficiency and growth, benefits from continuously delivering a personalized, high-touch client experience to clients. An efficient way to do that is to build the passage of best practices from experienced advisors to the next generation into the business model.

This way, owners stepping down or away from the firm can rest assured that their clients are receiving the same level of care their clients are accustomed to.

How Top Wealth Management Firms Use This Model

The Advisor Career Path & Compensation program has been successful for RIA firms like JL Smith. It has also made C2P a finalist in the “Thought Leadership & Education” category in ThinkAdvisor’s LUMINARIES awards in 2023.

At his own firm, Jason L Smith:

• Hired an intern at $10/hour starting at the first rung of the career path.

• Mentored and developed that team member into a $51 million rainmaker.

• Was able to step down as lead advisor and shift his focus to managing and scaling the business.

Restructuring for a Stable, Prosperous Future

The financial industry’s organizational design is evolving rapidly to meet the demands of a changing landscape of clients. Modern firms have clear roles, specialized positions, structured career paths, and balance between scale and service excellence to better serve their clients and prosper beyond their founder’s lifetime.

For more information on resources C2P offers for restructuring one’s firm, book a call, and download a free advisor guide about the Advisor Career Path & Compensation Model to help your business succeed with or without you.

Learn more about the Teamwork Movement Practice Management Program and how to implement the Career Path & Com model in your firm.

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.