Client Demand And Peers Provide Encouragement For Brokers Wishing To Go Independent

Wednesday, May 30, 2012 08:38
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Client Demand And Peers Provide Encouragement For Brokers Wishing To Go Independent

Tags: breakaway brokers | exit planning | goals

A multitude of factors are flinging the doors wide open to brokers with thoughts of going out on their own. Clients and independent colleagues are holding out their hands, inviting would be break-away brokers to a much less conflicted world.

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High net worth investors are a driving force in the sea change going on in the industry today. Client demands and advances in technology are largely responsible on top of the larger backdrop of the rise of a generation the likes of which we have not seen since the Greatest Generation and Baby Boomer days.
 

Cerulli Associates predicts independent registered investment advisor (RIA) market share will increase to 13.2% in 2012 and to 14% in 2013. Large financial institutions are being abandoned for a more transparent, objective landscape where clients feel their interests truly are being served. Now that more of their colleagues have made the move to independence, those entertaining the thought are feeling more confident to act.

 

 

 

Of course, this feeds right into the external family office model. It will be interesting to see how the independent RIA landscape and the family office world interact to create a new iteration of family office level service. With regulatory costs skyrocketing, consolidation of smaller independent firms is already happening and is expected to continue.
 
Let’s hope that as consolidation increases in the RIA landscape, that lessons will be learned and mistakes will go unrepeated. With a new infrastructure being built as the landscape changes, realistic hope increases the odds of a better model taking hold.

 

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