Pershing Offers RIAs Guidance about Hiring Breakaway Advisers

Pershing Advisor Solutions LLC, a BNY Mellon company, has made available a new study for registered investment adviser (RIA) firms.

“Creating Growth: Tuck Ins, Breakaways and Advisor Recruiting Strategies” provides RIAs with guidance about how they can profit from the trend of advisers moving toward independence.

The study, developed jointly with FA Insight, provides proprietary and third-party research on the current state of the market and the strategic opportunity in recruiting wirehouse-affiliated advisers. It also offers guidance on how to develop a recruiting strategy and effectively onboard and integrate advisers into a practice, Pershing said. 

Pershing said the report addresses four areas:

  • Determining What’s Right for Your Firm: The report discusses the benefits and challenges of expanding through breakaways. A successful recruiting strategy requires a clear strategic business assessment, firm value proposition and attractive infrastructure.
  • Developing a Recruiting Program: The paper offers guidance on how to evaluate a firm’s need for additional advisers, assess the attributes of target candidates, and implement a recruiting program to attract the right advisers.
  • Determining Appropriate Compensation Models:  As RIA compensation models of base pay and incentive structure are quite different from the wirehouse model of linking compensation to a percentage of revenue or assets managed, firms need to educate candidates on their compensation philosophy and clearly outline the value proposition of these structures.
  • Onboarding and Integrating Advisers:  Firms that fail to effectively onboard advisers needlessly extend the integration period and compromise the recruit’s comfort, confidence and satisfaction in joining the firm. Firms should develop a two-month plan that addresses operational aspects as well as legal considerations, and provide this to their new advisers on their first day with the firm.

To receive a copy of the study, contact Pershing Advisor Solutions at (800) 445-4467 or via e-mail at