RIA Boom Redraws Wealth Management Map

The RIA channel is coming after the big brokerage firms.

The multi-decade trend of brokerage reps breaking away and transitioning toward independent financial planning shows no signs of letting up. In fact, according to industry data, the pace of asset growth across the independent registered investment advisory ranks is now faster than that of the traditional Wall Street financial services conglomerates, like Merrill Lynch, Morgan Stanley and Wells Fargo. Still, at approximately $12 trillion in combined assets under advisement, the wirehouse brokerages overshadow the $10.6 trillion in combined assets managed by RIAs. But according to Cerulli Associates, the five-year compound annual growth rate of assets for the two separate advisory channels illustrates a strong advantage for RIAs.

“Overall, the trend driving toward independence is advisors looking for a higher payout and greater autonomy,” said Stephen Caruso, associate director in the wealth management practice at Cerulli.

Playing Matchmaker

As the breakaway movement has grown and evolved over the past few decades, it is becoming increasingly common for advisors to break away more than once as they spy greener pastures and better opportunities. “What’s emerging now is a second wave of breakaways,” said Adrian Duran, head of advisor recruiting at Integrated Partners.

Advisors who made an initial breakaway years ago are now starting to rethink those decisions. In some cases, they’re jumping again to launch fully independent businesses of their own, he added. “Many advisors are realizing that the independence they expected did not fully materialize, prompting a renewed focus on ownership, control and the ability to build a business on their own terms.”

Shelby Nicholl, founder of Muriel Consulting, helps breakaway advisors find their match and make the transition to independence. “Most of my clients are leaving captive firms and looking for a home where they can more completely own their book of business,” Nicholl said. A key element of breaking away is bringing as many of your clients and assets with you as possible. While industry data shows advisors generally bring about 85% of assets with them during a move, wirehouse advisors can plan for less than that, she added. “You have to run models and do the math to make sure what follows you will be enough to sustain you.”

It’s Fiduciary

Caruso said some of that growth is because the financial advice industry in general has started to view the wirehouse and broker-dealer channels, where advisors work as employees of the company, as “antiquated.” According to the Cerulli report:

• Over the past five years, wirehouse assets have grown at an annualized rate of 8.5%.
• However, the growth rate for RIAs clocked in at 11% over the same time period.

“Advisors we talk with are very interested in the RIA space, because they’re looking for a place to grow and build a business,” Caruso said. “Economics are a big driver, but the cultural side with greater autonomy and a better work-life balance, without having to work to a number or sales quota, is also important.”

John Bovard, owner of Incline Wealth Advisors, launched his RIA in 2020 after breaking away from Merrill Lynch in the midst of the Covid pandemic. “It was quite possibly the worst time to do it,” he said. “But, in hindsight, I don’t regret it.” For Bovard, the drivers toward the RIA channel were a combination of moving away from the expansive corporate structure and toward a specific distinction for which RIAs are known.

“I saw the direction that the wirehouse was headed and the integration of Bank of America, and it did not align with what I had envisioned for the next 30 years of my career,” he said. “I wanted to truly be a fiduciary for my clients and also offer them planning and investment features that were not offered at Merrill.”

Break by Break

For some advisors, the breakaway transition occurs in stages, first with a move to a larger RIA and next by hanging out a shingle and going it alone. This was the case for Peter Bjelopetrovich, who founded Mindset Wealth Management 18 months ago, almost six years after breaking away to join an established RIA. “At a high-level, I see one primary reason for this trend: There has never been less friction,” he said.

As the migration toward the RIA channel has gained steam over the past few decades, an expansive support network has emerged to help advisors navigate the process and find the right fit. “The sheer amount of companies and innovation that support a move to independence has unlocked a wave of advisors who have been waiting to take ownership of how they service clients, how they grow their business, and ultimately how they can execute their personal vision for their professional life’s work,” Bjelopetrovich said.

The significance of being able to stand out as a fiduciary simply can’t be overstated, said David Weiner, chief growth officer at Savvy Wealth. “Independence offers advisors the opportunity to act as true fiduciaries, focused purely on what is best for their clients,” he said. “In doing so, they can design customized client experiences while also keeping a larger share of the revenue they generate.” 

Hundreds of Options. Chuck Failla, founder of Sovereign Financial Group, is an example of the multiple ways that the financial planning industry is rolling out the red carpet to independent-minded advisors. Failla, who broke away from the broker-dealer channel in 2019, has created a kind of RIA incubator platform that lets advisors operate their own businesses under the Sovereign RIA. From his perspective, the independent RIA channel has unlimited growth potential, with 200 or 300 legitimate options for RIAs to plug into, he added. 

“Advisors are asking themselves why they are tithing back 50% or more of their potential income to the big brokerage firms,” Failla said. “There is no other industry or profession that has the combination of such incredible upside with such relatively low barriers to entry. All you need is a laptop and a dream, and you could build a multibillion-dollar RIA.”

For CJ Smith, the move toward independence is about finding comfort outside of a “massive corporate structure.” Smith launched Venture Stone Wealth Management under the Sovereign RIA last summer after spending almost five years as an employee of Mercer Advisors, a large RIA. “I felt I could make a bigger impact than just being a cog in a bigger machine,” she said. “This was a beautiful thing to do, and I’m so excited for the future.”

It’s All Indie. As the big brokerage firms have seen the independent RIA channel attract advisors, the entire wealth management industry has stepped up its game to compete for advisors. “All channels are paying close attention to the RIA market, but one group in particular appears ripe to make a meaningful shift in 2026, and that’s wirehouse advisors,” said Ed Swenson, president of RFG Advisory.

According to Swenson, advisors are tuned in to the potential “enterprise value” they can create as independent RIAs. “Advisors want to take advantage of the single largest, and accelerating, opportunity in wealth management — building enterprise value,” he added. “Wirehouse advisors, especially those growing quickly, increasingly recognize they’re missing out on a generational opportunity to become business owners and build long-term value for themselves and their families.”