Moving Toward Independenceassets.penton.com/MarketingImages/WM-NREI-Portal/Independence_info... ·...
Transcript of Moving Toward Independenceassets.penton.com/MarketingImages/WM-NREI-Portal/Independence_info... ·...
![Page 1: Moving Toward Independenceassets.penton.com/MarketingImages/WM-NREI-Portal/Independence_info... · The number of RIAs has nearly doubled in recent years, and that number is expected](https://reader033.fdocuments.us/reader033/viewer/2022041621/5e3f2f77a9bc4016623545b3/html5/thumbnails/1.jpg)
93Increase between 2005-2015
59,600
Independent RIA’s
VS
11
350,000 310,000
Financial Advisors
Increase between2015-2020
+9
65,00020202015
20152005
Moving Toward IndependenceMore advisors are migrating to the RIA model and realizing the benefits.
Decrease between2005-2015
Trending UpThe number of RIAs has nearly doubled in recent years, and that number is expected to keep growing.Cerulli Associates, U.S. RIA Marketplace 2016, Intermediary Quant Report 2015.
Growing DemandInvestors are increasingly drawn to the RIA model’s transparency, custom services and commitment to the client’s best interest.
Growing demand from clients is mirrored by the share of investor assets held by RIAs.
2005 2015 2020
13.5%
23.3%
28%
3.8In 2015, RIAs held $3.8 trillion
total in investor assets.
Other Reasons to Make the SwitchMany advisors cite the flexibility of the RIA model.Cerulli Associates, in partnership with the Investment Management Consultants Association, WealthManagement.com, the Financial Planning Association, and OnWallStreet
How New RIAs are Spending Resources Along with many advantages, going independent brings new expenses and time commitments to balance.
More Administrative Work40% more time spent by RIA advisors than wirehouse advisors on things like office administration and firm operations.
Employee Costs Matter49% of revenue spent by an average RIA firm on pay to owners, non-owner professionals and support staff.
How Pershing Can Help?A custodian like BNY Mellon’s Pershing can help guide advisors as they make the move to becoming an RIA, including how to:
Build a comprehensive plan that serves your unique needs and timeframe. Integrate with third-party tech solutions and build your technology stack. Minimize business disruptions during the change period. Maintain seamless client communications and optimal support.
••••
30,9002005
Financial advisors have more options than ever when it comes to choosing a business model to serve their clients. Recent data shows many advisors are making the Registered Investment Advisor (RIA) their business model of choice. What’s more, potential clients are increasingly seeking to work with RIAs. Here’s a breakdown of the changes that are happening and why so many advisors have decided independent is the way to be.
100% of RIA firm profits are the partners’ to extract or reinvest in the business, making it a much more open (and potentially gainful) pay model.
64% cite gaining autonomy as a key factor in their decision.
43% cite choosing their own technology systems.
67% cite building financial value as a key factor.
63% cite earning a potentially higher payout.
100%
67%64%
43%
63%
Cerulli Associates, U.S. RIA Marketplace 2016, Intermediary Quant Report 2015
Cerulli Associates, U.S. RIA Marketplace 2016, Intermediary Quant Report 2015
Cerulli Associates, U.S. Advisor Metrics 2016
2016 InvestmentNews Financial Performance Study of Advisory Firms