Displaying items by tag: RIAs

Independent financial advisors switching broker-dealers increasingly want an easy transition, product flexibility, and strong support for growth. Consolidation in the industry has narrowed the pool of broker-dealers, pushing many advisors to consider RIA firms for greater freedom and fewer compliance burdens. 

Still, many advisors remain with BDs to retain transactional business alongside fee-based growth, making hybrid models attractive. Technology like DocuSign has lowered barriers to moving, allowing advisors to transition books of business more quickly and with less disruption. 

Competition for top talent is fierce, with broker-dealers offering higher transition payouts and low-cost platforms to attract advisors. 

Finsum: While RIAs continue to grow rapidly, BDs aren’t going away but must evolve to meet advisor demands or risk falling behind.

Raymond James Financial, long a leader in recruiting advisors from rival firms, is experiencing its strongest hiring momentum since the 2008–2009 financial crisis. With the stock market rebounding after tariff-related uncertainty earlier this year, the firm is benefiting from a robust recruiting pipeline and high advisor commitments. 

CEO Paul Shoukry noted that current activity levels rival the post-crisis surge, but with larger, more established teams now seeking the firm as a stable home. In the June quarter, Raymond James reported $11.7 billion in net new domestic assets, translating to a 3.4% annualized growth rate, with activity accelerating into the high single digits last month. 

Industry disruption, including LPL Financial’s acquisition of Commonwealth Financial Network, has created new recruiting opportunities that Raymond James is actively pursuing. 

Finsum: Advisors are looking to technical features firms can offer, so be sure to examine the whole package when picking a firm. 

Independent financial advisors switching broker-dealers prioritize a smooth transition, supportive infrastructure, and a business-friendly environment with product and operational flexibility. 

Recruiter Derrick Friedman emphasizes that advisors now have the leverage to demand these conditions—and if broker-dealers (BDs) don’t meet them, they risk decline. Industry consolidation has shrunk the pool of large BDs, prompting many advisors to consider RIAs, especially those seeking fewer compliance burdens and more freedom to grow fee-based practices. 

Hybrid models remain attractive to advisors who still maintain transactional business and want to retain flexibility. Technology—like DocuSign—has reduced friction in transitions, making it easier for advisors to move their book of business quickly. 

Finsum: While RIAs are expanding rapidly, BDs aren't disappearing; instead, consolidation is pushing advisors and recruiters alike to explore a wider landscape of firms.

Custodian transitions can make RIAs anxious about losing clients, but careful planning and strong communication can significantly reduce attrition risk. On average, advisors may lose nearly 20% of client assets during a transition, but that figure often reflects poor preparation rather than an inevitable outcome. 

The key to a successful move lies in two areas: reinforcing client relationships and clearly explaining the reasons and benefits behind the change. Advisors should prioritize transparency without overloading clients with technical details, offering reassurance, a timeline, and emphasizing how the switch enhances service. 

Relationships that feel unstable before a transition may signal deeper issues, making them worth addressing whether or not a move happens. 

Finsum: Ultimately, sticking with a subpar custodian out of fear can hurt more than switching—especially if poor service impacts how clients perceive the advisor’s value.

The advisor landscape is shifting, with over 9,000 advisors changing firms in 2023, particularly within the RIA sector. Many advisors employed by RIAs—often non-owners earning a percentage of revenue or salary—are seeking greater autonomy, ownership opportunities, and better compensation. 

The rise of large RIA aggregators and increasing M&A activity have contributed to advisor dissatisfaction, as firms focus on efficiency and growth at the expense of individual autonomy. 

Advisors looking to transition have several paths, including joining another RIA, moving to a wirehouse or bank, launching their own firm, or affiliating with an independent broker-dealer. Each option balances control, compensation, and operational complexity, making careful planning essential for a successful transition. 

Finsum: As the RIA industry consolidates, firms must innovate their advisor value propositions to retain talent and remain competitive.