March 25, 2024

All About OSJs

In this episode of the Confident Advisor Practice Podcast, hosts Bill and Pete Bush dive into the intricacies of the Office of Supervisory Jurisdiction (OSJ) model, sharing their insights and experiences from the Horizon Advisor Network. They discuss the evolving role of OSJs in the securities industry, shedding light on how OSJs provide support, compliance, supervision, and additional value to independent financial advisors. The episode covers the benefits of plugging into an OSJ, the personal touch and community it offers, and tackles common misconceptions about the model.

Episode Highlights:

- **00:00:07:** Bill welcomes listeners to the podcast and sets the stage for the episode's focus on the OSJ model within the Horizon Advisor Network. He highlights the purpose of the podcast, which is to provide tips, strategies, and perspectives for building confidence in financial advisors’ practices. The introduction underscores the significance of understanding the OSJ model for those in the securities industry.

- **00:00:41:** Pete expresses his pleasure in joining the conversation, setting a collaborative tone for the episode. The brief

exchange emphasizes the close relationship between the hosts and hints at the episode's informal but informative style.

- **00:00:54:** The conversation shifts to a detailed explanation of the OSJ (Office of Supervisory Jurisdiction). Pete clarifies the vague understanding some listeners might have about OSJs, leading into a definition of the acronym and its significance in the securities industry. This segment is crucial for establishing a foundational understanding of the topic.

- **00:02:08:** Bill and Pete discuss the specific responsibilities and requirements of an OSJ, including the necessity of holding a Series 24 license. This breakdown helps clarify the regulatory and supervisory roles that OSJs play within broker-dealer firms, making it easier for listeners to grasp the breadth of an OSJ's duties.

- **00:03:29:** The hosts touch on the scale and scope of the Horizon Advisor Network's OSJ, mentioning the number of advisors and geographical distribution. This segment highlights the network's growth and the logistical complexities of managing a wide-spanning network of advisors.

- **00:04:30:** Pete elaborates on the evolution of the OSJ model from a compliance and supervision focus to a value-added service provider. Here, specific examples like marketing programs, business coaching, and community-building efforts are discussed, illustrating the OSJs role beyond regulatory functions.

- **00:05:15:** The episode narrows in on the tangible benefits of joining an OSJ for independent advisors, emphasizing the financial arrangements, personal attention, and the broader support ecosystem. Pete provides insights into how OSJs like

Horizon Advisor Network cater to various advisor needs, contributing to their professional growth and client service capabilities.

- **00:07:37:** Discussion turns to the importance and impact of in-person gatherings within the OSJ community. This part of the conversation underscores the value of face-to-face interactions in fostering relationships and community spirit among networked advisors.

- **00:08:49:** Bill and Pete address some common misunderstandings about OSJs, such as concerns about client ownership and operational freedom. This segment serves to debunk myths and present the OSJ model as an enhancing rather than restricting partnership for advisors.

- **00:10:20:** The hosts explore the diverse sizes and types of advisory practices that find value in plugging into an OSJ, reflecting on their own practice's growth and development alongside their affiliates.

- **00:13:46:** Pete identifies the most significant challenges faced by OSJs, focusing on the people management aspect of advisory practices. This insight sheds light on the multifaceted role of OSJs in advising on business operations, growth strategies, and practice management.

- **00:15:58:** The episode concludes with reflections on the rewarding aspects of operating an OSJ, particularly in enabling advisor growth, facilitating successful exits, and enhancing client service. Pete’s perspective offers a holistic view of the OSJ’s impact on the advisory landscape.

Key Takeaways:

- The OSJ model plays a pivotal role in providing compliance, supervision, and additional value-added services to independent financial advisors, enhancing their ability to serve clients effectively.

- Joining an OSJ like the Horizon Advisor Network offers advisors a blend of regulatory support and community benefits, including personalized attention, professional development opportunities, and a supportive advisor ecosystem.

- Common misconceptions about OSJs, such as concerns over client ownership and operational restrictions, are largely unfounded, with OSJs enabling rather than limiting advisor independence and growth.

Tweetable Quotes:

- "Understanding the OSJ model is crucial for anyone in the securities industry looking to enhance their practice." – Bill Bush

- "The evolution of OSJs from purely compliance roles to providers of value-added services represents a significant shift in the industry." - Pete Bush

- "Being part of an OSJ offers a personal touch and a supportive community, vital for independent advisors aiming for growth." - Pete Bush