The paper, “Destination RIA: What to Expect and How to Prepare,” sets expectations for the different challenges of working as an RIA.
“The RIA model has continued to grow rapidly as wirehouse advisers seek the freedom to run their businesses in a manner which best enables them to meet their clients’ needs,” said Kim Dellarocca, head of practice management at Pershing. “The study provides assistance for determining whether such a move is right for an adviser and, if so, how to make a successful transition.”
Pershing says highlights of its paper include:
- Benefits of the Independent Model – Industry turmoil, mergers of major firms, regulatory pressure, and investor trends are driving the shift toward greater fiduciary responsibility, writes Pershing.
- What it Takes to Succeed – The paper explores the many options advisers have when considering going independent, including: to start an RIA, to join an RIA, to join an independent broker/dealer, or to start a broker/dealer or affiliate with a strategic acquirer.
- Ensuring a Successful Transition – Pershing writes that some advisers do not have the prerequisite personality traits and practice characteristics to succeed as an independent adviser and that personal preferences may be an obstacle when it comes to a preference for running a business versus simply servicing clients.
- Planning the Transition – The paper suggests advisers should consider working with a transition consultant to develop a business plan with a detailed timeline and project plan that can provide a road map for guiding them through the transition.
Additional information is available at www.pershingadvisorsolutions.com.