Philip Palaveev: ‘There Are No More Free Clients’

Consolidation, unsurprisingly, was another trend Palaveev saw for the rest of the year, driven by private equity and a desire for sophisticated advice from high-net-worth individuals and families.

"As we mature, we don't know what the future will look like," he explained. "While private equity is good for the industry in that it drives up valuations, it could end up being like the condominium boom in Florida. As fast as private-equity firms enter, they leave. We don't want a business of empty neighborhoods and only 10 or 12 mega-RIAs."

Comparing advice industry consolidation to that of the accounting business, he added that there will always be a place for smaller sole practitioners.

"We criticize smaller firms because they're not scalable or whatever, but they really represent the heart and soul of the industry," he said. "It's all about what you're trying to achieve. If you want complete control of your practice and a hand in everything, then the sole practitioner fulfills that need. If you want to build a business and be part of something bigger than yourself, than a team-oriented ensemble practice is the way to go."

Palaveev concluded that too often, the industry focuses on "one problem after another," but he was optimistic about the outlook for the industry as a whole.

"The guys yelling about how the sky is falling are usually selling helmets," he said. "The average advisor makes as much as a dentist or surgeon. We have to be sure we're respectful of that and don't take our clients for granted."