Thirty-two percent of independent broker-dealer advisors have considered opening an RIA in the past 12 months, and 3% of these have given the idea serious thought, Cerulli Associates reported Tuesday.
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.
Cerulli noted that the fastest growth in advisor headcount over the past decade has occurred among firms in the RIA channels, and mainly at the expense of wirehouses. Now, the IBD channel, too, is facing an exodus to RIA channels.
Researchers asked those who had either somewhat or seriously considered opening an RIA separate from their broker-dealer about their preferred BD affiliation if they were to do so.
Thirty-six percent said they may retain affiliation with their current broker-dealer's RIA platform but still would consider other options. Thirty-three percent were unsure which RIA affiliation they preferred, saying they require more information to understand which model would best suit their practice.
Only 14% of IBD advisors said they definitely want to stay with their current IBD's RIA platform if they should open an RIA. And 13% unquestionably prefer to move to an RIA custodian, such as Schwab or Fidelity.
