XY Planning Network (XYPN) has launched Sapphire, a new Registered Investment Advisor (RIA) affiliation option designed to empower fee-only financial advisors with independence, cutting-edge technology, and comprehensive support without the traditional constraints of corporate RIAs or broker-dealers. This model complements XYPN's existing Emerald membership, offering advisors two distinct pathways to independence within the network.
The Sapphire model is a response to the challenges faced by advisors seeking independence, who often find themselves constrained by the requirements of corporate RIAs. Alan Moore, CEO and co-founder of XYPN, highlighted the demand for a program that allows advisors to focus on clients rather than compliance and regulations. Sapphire meets this need by enabling advisors to retain full ownership of their business, clients, and data, with the flexibility to transition their entire revenue to another platform at any time.
One of the standout features of Sapphire is its streamlined registration process under an SEC-Registered Investment Advisor structure, which can significantly reduce the time to launch a practice from months to days. This is particularly beneficial for advisors dealing with multi-state registrations or complex regulatory challenges, as it offers the consistency of SEC-level regulations.
Early feedback from advisors like Brian Muller of Momentous Wealth Advisors underscores the value of Sapphire's support in handling essential tasks, allowing advisors to concentrate on building their brand and serving clients. The model's transparent and affordable fee structure—$1,500 per month plus 20% of the advisor's revenue—further distinguishes it from other affiliation models with less clear pricing.
The introduction of Sapphire marks a pivotal moment in the financial advisory industry, offering a balanced solution between full independence and the limitations of traditional corporate structures. By addressing the need for support services that enable advisors to focus on client relationships and financial planning, XYPN is leading the way in the evolution of independent financial advice. This innovation not only benefits advisors but also has the potential to influence the broader industry's approach to practice structure and client service in the future.
