RIA Channel Growth Soaring as More Advisors Break Away
April 15, 2020 by Jeff Berman
RIA channel growth continues to increase, driven by an increased number of advisors breaking away to either open up their own RIA firms or become part of an established one, according to the latest Cerulli Edge report, on U.S. asset and wealth management.
That increased flow into the RIA channel is only expected to grow, according to the report, which showed a majority of advisors at wirehouse, national/regional broker-dealer, insurance BD and retail bank BD advisory firms polled indicated they would prefer to transition to the independent RIA, hybrid RIA or independent BD channels if they leave their current firm. And a majority of them would prefer to start their own new practices.
Among all employee advisors who would prefer independence, 35% favored joining an existing independent practice as a partial owner or principal, 33% favored starting a new independent practice with one or more advisors, 22% favored starting a new practice of their own and 10% favored joining an existing independent firm as an employee. Among that entire group, 55% were interested in starting a new practice vs. joining an existing one.
Cerulli gathered data in partnership with the Investments & Wealth Institute and the Financial Planning Association.
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