Mar. 1, 2016 (Wealth Management Magazine) — In the late 1990s, Pete Bush was working for Cetera Advisors under an office of supervisory jurisdiction (OSJ), as was most every other independent rep paying for the privilege of having a supervisor. These offices were mandated by FINRA to more effectively distribute the oversight of an independent broker/dealer’s scattered network of affiliated reps.
Bush and a few others from the firm eventually decided it made sense to start their own OSJ; it remained small, just three partners and six advisors, and stayed that way until 2011. But to Bush it still felt like more like a burden than an efficient way to share back-office functions and compliance mandates.
“I was questioning the sanity and the financial viability of being a Super OSJ,” Bush says. But soon after, a partner at Cetera gave him some prescient advice: “Get big as fast as you can,” he said. “Then it becomes profitable. And then other opportunities develop.”
Today, Bush’s Horizon Wealth Management has 28 advisors and over $1 billion in assets; last year the OSJ generated $6.3 million in top-line revenue.