Osaic’s $1.5B Gateway Move Shows The W-2 Advisor Model Is Gaining Ground
Osaic has moved Gateway Investments into its W-2 advisor channel, giving one of its long-affiliated teams a different structure for growth, succession and day-to-day operations.
Gateway Investments, based in Garden City, New York, has been affiliated with Osaic since 2004 through its 1099 independent contractor channel. The team, led by Managing Director Thomas Santucci, now oversees approximately $1.5 billion in assets under administration and includes six advisors.
That makes the move more than a routine advisor transfer. Gateway is not leaving Osaic for a rival. It is changing how it operates inside the Osaic platform. That difference matters because large wealth management firms are increasingly competing through multiple affiliation models, not just by recruiting advisors from outside firms.
Raymond James and RBC Wealth Management also announced separate advisor additions, with Raymond James adding a $400 million Merrill Lynch duo in Lexington, Kentucky, and RBC adding a $542 million UBS team in the Philadelphia market.
TL;DR
Osaic shift: Gateway Investments moved from Osaic’s 1099 channel to its Empowered Independence W-2 channel while staying within the firm’s platform.
Asset scale: The Garden City-based team oversees about $1.5 billion in assets under administration and includes six advisors.
Succession angle: The move gives Gateway more operational support while helping the team invest in future leadership and next-generation advisors.
Raymond James hire: Seth Lawless and Charters “Jay” Osborne joined Raymond James from Merrill Lynch with about $400 million in client assets.
RBC expansion: The Banks Carter Group joined RBC Wealth Management in Mount Laurel, New Jersey, after managing $542 million in client assets at UBS.
Why Gateway’s W-2 Switch Is Different From A Standard Advisor Move
Most advisor-move stories focus on one firm losing a team and another firm gaining one. The Gateway Investments story is different because the team stayed with Osaic but changed its affiliation model.
Gateway had operated under Osaic’s independent contractor channel for more than two decades. Before Osaic unified its legacy broker-dealer brands, the team was affiliated with Royal Alliance. The move into Empowered Independence shifts the practice into Osaic’s W-2 employee channel while keeping the team connected to the same broader platform.
That makes this story more about channel design than brand switching. Osaic is trying to show that advisors do not have to leave the firm to find a structure that better fits their next stage.
What The W-2 Switch Changes
Operating burden: Osaic takes on more of the infrastructure work that can pull senior advisors away from client service.
Growth runway: Gateway gains a structure built to support scale, staff development and future leadership planning.
Client focus: The team can direct more time toward relationships, planning conversations and long-term service work.
Succession path: The model can help teams prepare younger advisors without forcing a disruptive external sale.
Platform continuity: Gateway keeps its Osaic relationship while changing the way the business is supported.
What Empowered Independence Is Trying To Solve
Osaic calls its W-2 channel Empowered Independence. The name captures the tension many large practices face: they want independence, but they also want more help running the business.
That problem becomes more obvious as advisory firms grow. A team with $1.5 billion in assets is not only managing portfolios and planning relationships. It is also handling staffing, technology, compliance coordination, office operations, client service systems and long-term succession questions.
For some founders, those business-management duties can start to compete with the work that built the practice in the first place. A W-2 model can shift more of that operational load to the platform while still giving advisors room to maintain their client service identity.
Osaic said Gateway gains access to enhanced operational support, advanced technology and dedicated resources through the transition. For a team that has been with the platform since 2004, that can make the move feel less like a break and more like a business redesign.
Why Large Teams May Consider This Model
Time leverage: Senior advisors can spend less time on internal administration and more time with clients.
Leadership depth: Practices can create more room for younger advisors to grow into larger roles.
Business monetization: Founders may gain more options for extracting value from the business over time.
Reduced disruption: Clients can remain with the same team while the platform handles more operational complexity.
Strategic flexibility: Advisors can keep a degree of independence while using the scale of a larger institution.
Gateway Adds To Osaic’s Bigger W-2 Push
Gateway is part of a broader expansion of Osaic’s employee-channel strategy.
WealthManagement.com reported that Osaic launched the W-2 employee affiliation model in 2023 and has seen the pace of moves into that channel accelerate. Cindy Hamel, who heads Empowered Independence, said the firm expects to become more aggressive in reaching external teams as the channel develops.
That matters because Osaic has historically been known more as an independent broker-dealer platform. Its W-2 channel gives it another way to compete for teams that want more support but do not necessarily want to join a traditional wirehouse model.
The timing also fits Osaic’s broader post-consolidation story. After years of bringing legacy broker-dealer brands under the Osaic name, the firm is trying to show that its unified platform can support more than one type of advisor business.
Where Osaic Gains Leverage
Advisor retention: Existing teams may stay inside Osaic instead of leaving when their needs change.
External recruiting: The W-2 channel gives Osaic another pitch for teams considering a platform move.
Succession planning: The model may appeal to founders thinking about a three- to five-year exit path.
Operational scale: Osaic can centralize support functions that smaller practices may struggle to manage alone.
Channel optionality: The firm can compete across independent contractor, employee advisor and RIA-style business models.
Raymond James Adds A Merrill Duo In Lexington
Raymond James also added a Kentucky team from Merrill Lynch.
Seth Lawless and Charters “Jay” Osborne joined Raymond James & Associates, the firm’s employee advisor channel, and now operate asOsborne Lawless & Associates of Raymond James in Lexington. The advisors previously managed approximately $400 million in client assets at Merrill Lynch.
The team also includes client relationship consultant Rob Mitchell and senior registered client relationship associates Karie Howard and Lee Ann Myers. Raymond James said the group works with multigenerational families, business owners, health care professionals and retirees.
The Raymond James move has a different shape from Gateway’s channel switch. Gateway stayed inside Osaic and changed structure. Lawless and Osborne left Merrill Lynch for a new firm and entered Raymond James’ employee channel.
Still, the motivations overlap. Raymond James said the team cited advisor independence, client-focused culture and technology tools that support planning work, especially around tax and estate planning.
RBC Expands Its Philadelphia Market With A UBS Team
RBC Wealth Management addedThe Banks Carter Group to its Mount Laurel, New Jersey, branch.
The five-member team joined from UBS, where it managed $542 million in client assets. The group includes Bill Banks, Sean Carter, Rory Banks, Jasmine Richardson and Jennille Garcia.
RBC said the team serves clients and families through wealth planning, portfolio construction and legacy planning. The addition also expands RBC’s reach in the Philadelphia market, with Mount Laurel giving the firm a South Jersey presence tied to a larger regional wealth corridor.
This move is especially relevant for NJ Financial News readers because the team is joining RBC’s Mount Laurel branch while serving the Philadelphia market. It shows how recruiting activity in wealth management often crosses state lines, especially in markets where South Jersey, Philadelphia and nearby suburbs share one client base.
What Makes The RBC Hire Locally Relevant
South Jersey branch: The team joined RBC’s Mount Laurel office, giving the move a direct New Jersey connection.
Philadelphia reach: The practice serves a regional market that extends beyond one city or state line.
UBS departure: The move adds to the broader industry pattern of teams leaving large wirehouse platforms.
Planning depth: RBC framed the group around wealth planning, portfolio construction and legacy planning.
Client segment: The team’s experience appears tied to high-net-worth families with more complex planning needs.
The Real Story Is How Firms Are Redefining Support
These three announcements are not identical. Osaic shifted a long-affiliated team into a W-2 model. Raymond James recruited a Merrill duo into its employee advisor channel. RBC added a UBS team to deepen a regional branch.
But the common thread is support. Advisors are not only asking where they can move assets. They are asking which model lets them run the business with less friction while giving clients a stronger experience.
That is why platform support is now part of the recruiting pitch. In other recent advisor moves, firms have emphasized technology, operational backing, independence, culture and continuity as reasons teams changed platforms. The same pattern shows up here, but through three different models.
For Osaic, support means taking more operational weight off Gateway through the W-2 channel. For Raymond James, it means pairing employee-channel infrastructure with planning technology. For RBC, it means giving an experienced UBS team access to a regional wealth platform with tools for complex client needs.
Why The 1099-To-W-2 Question Matters
The 1099-to-W-2 question is becoming more important because many advisor teams are aging, scaling or preparing for succession.
A 1099 model can give advisors more business control. That can be attractive for entrepreneurial teams that want to own more of the operating decisions. But it also means the practice may carry more administrative responsibility.
A W-2 model can reduce some of that burden. The tradeoff is that advisors may accept more platform involvement in exchange for infrastructure, monetization options and succession support.
Neither model is automatically better. The right answer depends on the advisor’s stage, client base, growth plan and appetite for running the business side of the practice.
What Readers Should Watch Next
The next question is whether Osaic can turn Gateway’s move into a broader proof point for its W-2 channel.
If more teams inside Osaic choose Empowered Independence, the firm may have a stronger retention tool for practices that want more support but do not want to leave. If external teams begin joining the channel more often, Osaic could become a more direct competitor in a segment it historically did not emphasize as heavily.
Raymond James and RBC are also worth watching because both moves show how employee-style channels remain competitive. Independence gets a lot of attention in advisor recruiting, but many teams still want the structure, technology and service backing of a larger firm.
For readers, the takeaway is that advisor movement is becoming more nuanced. The old question was, “Which firm won the team?” The better question now is, “Which platform model fits the next version of the practice?”
Frequently Asked Questions About Osaic’s Gateway Investments Move
What Is Gateway Investments?
Gateway Investments is a Garden City, New York-based advisory team led by Managing Director Thomas Santucci. The team has been affiliated with Osaic since 2004 and now oversees approximately $1.5 billion in assets under administration. Its services include wealth management, retirement planning and estate planning for a diverse client base.
What Does Osaic’s Empowered Independence Model Mean?
Osaic’s Empowered Independence model is the firm’s W-2 employee advisor channel. It is designed for growth-oriented advisory teams that want more operational leverage while still maintaining flexibility in how they serve clients. The model gives teams access to platform support, technology and dedicated resources while shifting more business infrastructure to Osaic.
Why Did Gateway Investments Move From 1099 To W-2?
Gateway moved from the 1099 channel to the W-2 channel to streamline operations and spend more time on client relationships, according to Osaic’s announcement. The move also supports the firm’s next generation of advisors, which makes succession and long-term leadership development part of the story.
How Is The Raymond James Move Different From The Osaic Move?
The Raymond James move involved Seth Lawless and Charters “Jay” Osborne leaving Merrill Lynch and joining Raymond James & Associates in Lexington, Kentucky. Gateway, by contrast, stayed within Osaic but changed its affiliation model. One story is a firm-to-firm move, while the other is a channel transition inside the same platform.
Why Is The RBC Move Relevant To New Jersey Readers?
RBC’s addition of The Banks Carter Group is relevant because the team joined RBC Wealth Management’s Mount Laurel, New Jersey, branch while serving the Philadelphia market. The move shows how advisor recruiting in the region often connects South Jersey, Philadelphia and nearby wealth markets.
Further Reading
Gateway Investments Transitions To Empowered Independence At Osaic: Osaic’s announcement on Gateway Investments moving into the firm’s W-2 channel with approximately $1.5 billion in AUA.
Raymond James Welcomes Advisors Managing Approximately $400 Million In Lexington, Kentucky: Raymond James’ announcement on Seth Lawless and Charters “Jay” Osborne joining from Merrill Lynch.
RBC Wealth Management Attracts $542 Million Team In Philadelphia Market: RBC’s announcement on The Banks Carter Group joining its Mount Laurel branch from UBS.
Wells Fargo, LPL And Cetera Add Advisor Teams In New Recruiting Moves: A related NJ Financial News article on advisor recruiting, platform support and team movement across major wealth management firms.
