The Biggest Trends in the Advisor Industry
Did you know that the average independent advisor stays with their broker-dealer firm for 9 years? You’ve likely experienced this as well as other trends in the advisor industry. We’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 advisor’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 we’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
- We’re built by advisors that outgrew their broker-dealer, for other top advisors and we’re 100% advisor-owned
If you’re finding yourself growing tired of the limited solutions, lack of support, or a change in culture, we’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.