Translating the tangible benefits of a move to the RIA space to your clients
As the wealth management landscape evolves, we continue to watch a steady stream of top advisors leave the traditional wirehouse space for independent RIA models. Although independence invariably gives these advisors greater freedom, flexibility and control, we also need to ask the question, “What’s in it for their clients?”
At the heart of the matter is the fact that in the RIA space there is the separation of advice from asset custody and product manufacturing—a benefit to clients since it eliminates conflicts of interest and allows the advisor to act as a true fiduciary.
Consider these 5 other key advantages that translate into an enhanced client experience:
Take the example of Mitchell Brown, a 20-year wirehouse veteran, who heads up a $5 MM team that just recently moved to a boutique RIA. What prompted this move? Mitchell felt that being part of an enormous retail bank, which catered to mass-market consumers, no longer served his team or his high net worth and ultra-high net worth clients.
The fact that this disconnect made it very difficult to provide clients with the comprehensive range of financial services and support that they required made it clear to Mitchell that he needed to leave. What Mitchell found was an independent boutique that truly aligned with his team’s client service model and client base, with a cutting edge platform and set of resources that would provide them the flexibility to better and more completely serve clients in the following areas:
Over the last few years, we have seen major momentum – particularly among top advisory teams – out of the wirehouses and into independent RIA models.
We anticipate that this momentum will continue as an increasing number of entrepreneurial-minded folks recognize that their own “independence day” will also result in tangible benefits for their clients—a win-win for all.