The Top Three Benefits of Independence
In the past ten years, the number of advisors who’ve made the transition to the independent business model has doubled. Why has independence become so appealing to so many advisors?
Here are the top three benefits of becoming an RIA, excerpted from BNY Mellon Pershing’s latest whitepaper “Destination RIA: What to Expect and How to Prepare for Independence”:
1. Freedom: First and foremost, advisors can create a firm of their own design, setting the tone for business economics, staff management, technology, client service approach, investment solutions and the overall culture. Independent RIAs are empowered to cultivate an autonomous business that will stand as their legacy.
2. Better Serve Clients: Client relationships are at the heart of an RIA firm. Independent models place fiduciary advice at the forefront of the business, as advisors are not restricted in their product and service offerings.
3. Run Your Business Efficiently: According to research by Cerulli Associates, independent advisors allocate less time to administrative functions such as office management and firm operation, by leveraging technology tailored to their needs and building a team structure. This enables them to spend more time serving their clients.
After appreciating the broad scope of benefits and considering the opportunities, many financial advisors see a clear path for their business through an independent model. Transitioning does involve a number of steps, but with a strong partner and a breadth of options, many have succeeded and reaped the rewards.
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