04.30.24

IBD Channel Faces Exodus to RIAs

by: Michael S. Fischer

About 32% of independent broker-dealer (IBD) advisors have considered opening a registered investment advisor (RIA) in the past year, according to Cerulli Associates, and 3% of these have given the idea serious thought. Several factors are influencing employee advisors who prefer the independent model, including a higher payout, the ability to create enterprise value in an independent business, greater autonomy and a desire to create a more personable culture. “Added accountability and the unfamiliar economics leave many new RIAs feeling spread too thin and unable to grow their practice as they had expected,” Andrew Blake, associate director of wealth management at Cerulli, said. “For asset managers distributing in the RIA and IBD channels, offering business consulting resources that can help advisors work through these challenges will be meaningful for developing a long-term partnership.”

Read the full article on Think Advisor