The Biggest Trends in the Advisor Industry
Did you know that the average independent advisor stays with their broker-dealer firm for 9 years? Youâ€™ve likely experienced this as well as other trends in the advisor industry. Weâ€™re here to break down these trends and help you uncover some opportunities for your future in the industry.
Trend: the average independent advisor leaves their broker-dealer firm after 9 years.
But why are they moving on? The top three reasons cited for leaving:
- Change in culture (ownership or leadership change, introduction of PE capital)
- Lack of broker-dealer investment choices to suit needs of HNW clients
- Inadequate back office support
Ever find yourself experiencing any of these problems?
Trend: There are now more independent advisors than wirehouse advisors, and the gap continues to grow.
Some reasons for this trend:
- With the consolidation of independent firms, advisors are left with fewer choices and less flexibility
- The industry is pushing advisors to do more fee-based business
- Recurring revenue provides predictable cash flow, resulting in increased enterprise value
- Advisory compliance requirements are less complex, which saves time and money
- Larger broker-dealers are cutting alternative investment offerings from their platforms
Trend: the average independent advisorâ€™s annual production is approximately $266,000, with $40MM assets under management
- The top 6 independent broker-dealers represent 80% of independent advisors
- Larger independent broker-dealers struggle to meet the needs of those more sophisticated advisors
But weâ€™re built to cater specifically to those producers.
We are an independent broker-dealer platform for RIAs and larger independent advisors that offers a boutique firm experience. That means we can deliver flexibility and support for you to grow your practice.
- We provide back-office support, compliance, technology, and billing services to advisors at a compelling price compared to a standalone RIA or advisor team
- Our support staff is hand-picked from within the industry
- We offer multi-custodial platform (Fidelity, Schwab, TD, etc.) that caters to larger advisors
- Weâ€™re built by advisors that outgrew their broker-dealer, for other top advisors and weâ€™re 100% advisor-owned
If youâ€™re finding yourself growing tired of the limited solutions, lack of support, or a change in culture, weâ€™d love to talk about transitioning you to Arkadios. You can learn more about us here or reach out to us to start a conversation here.