Displaying items by tag: independence

Wednesday, 20 January 2021 16:54

Why Branding Matters When Joining an RIA

(New York)

There are so many things for a broker to consider before going independent. Aside from all the main ones that are usually discussed—compensation, freedom with clients etc—another key concern is branding. Many brokers have trouble leaving the big name on their business card behind when changing firms. Even advisors who are already at RIAs have a big choice to make in changing their branding. All of this highlights a key point: branding and marketing matter a great deal when going independent, and the support the new RIA provides is critical. Essentially, an important question to ask your potential new RIA is what kind of branding and marketing support they provide to help you transition existing clients, but also acquire new ones.


FINSUM: Marketing and branding are crucial areas where RIAs can vary wildly. Those with strong offerings will empower advisors to acquire new clients and grow AUM, where weak offerings can lead to client attrition and few new opportunities.

Published in Wealth Management

(New York)

2020 was a rollercoaster of a year and not just in financial markets. It was quite a wild year in recruiting as well. When the pandemic hit, advisor movement dropped off to a trickle, but in the summer it started to come back and was roaring in the second half of the year. 2021 seems like it will be much the same. Both large IBDs and RIAs are looking to increase recruiting efforts, and offer packages for jumping ship have been getting larger. Commonwealth, for instance is planning a major recruiting push this year, which builds on other big efforts from Fidelity and LPL.


FINSUM: This definitely feels like an advisor’s market for moves. Firms are hungry to recruit and advisors seem to have the upper hand in negotiations.

Published in Wealth Management

(New York)

2020 was a very unique year for recruiting. In particular, despite the obvious market and economic turmoil, it was a year in which almost all aspects of going independent got more favorable. Not only did working from home making recruiting conversations with new firms easier, but working from home itself made going independent seem less daunting. Further, firms’ appetite to offer great packages to recruit has grown considerably since this time last year, so it is certainly an advisors’ market when it comes to moving.


FINSUM: One other point to mention here is that clients themselves have also gotten more comfortable with their advisors being independent. The lack of office visits and growth of Zoom communication has limited the need for the big well-known logo in the office lobby when clients arrive. Independents seem likely to gain more market share.

Published in Wealth Management

(New York)

When the pandemic first hit, recruiting slowed down, with less advisors moving firms. However, after a couple of months, things started to pick up. According to a TD Ameritrade survey, 40% of advisors now say they are more likely to move than they were before the pandemic. Only 15% say they are less likely. If one comment sums up the increased velocity of recruiting, it might be this, “Advisors are at home and working in an independent environment. That can cause them to question what they are paying for at their firm. ‘Do I need the overhead and management of the wirehouse? Am I doing alright without it now?”.


FINSUM: On top of the questioning of whether all the overheads associated with a wirehouse make sense when they are working from home, the other big thing driving moves is the simple fact that it is easier for recruiters to reach advisors when they aren’t in the office. This makes the whole courting and exploration period much simpler.

Published in Wealth Management

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