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.”