Number of New RIAs Grew 75% Between 2012 and 2016, Schwab Finds

RIAs established in 2016 had $55 billion in assets under management.
The number of advisers who became registered investment advisers (RIAs) between 2012 and 2016 grew 75%, Schwab Advisor Services found in its analysis of Security and Exchange Commission (SEC) registration data. In 2012, 114 firms filed to become RIAs, and in 2016, 199 firms filed.

While firms of all sizes are becoming RIAs, Schwab found that the percentage of new RIAs with $300 million in assets under management (AUA) or more doubled since 2013. Firms established in 2016 had $55 million in AUA.

“We believe passionately in the independent model and the value it delivers to advisers and their clients,” says Jonathan Beatty, senior vice president and head of sales and relationship management at Schwab Advisor Services. “The momentum in this industry speaks to the fact that more and more advisers are seeking the flexibility to create the kinds of firms investors are seeking. As increasing numbers of advisers choose this model, we are committed to providing the education, resources and ongoing partnership to help them make a successful and sustainable transition.”