Whether creating, joining, or collaborating with an independent firm, each path offers unique advantages. Learn how to identify which opportunity is right for you and your clients.

Financial advisors seeking independence have new horizons beyond traditional banks and broker-dealers. Registered Investment Adviser Firm (RIA) models provide greater flexibility and autonomy.

Whether you choose to create, join, or collaborate with an independent firm, RIA models offer exciting opportunities. But before exploring each alternative, let’s examine the growth of the RIA channel closely.

The Rise of the Independent RIA Model

Registered Investment Advisors, or RIAs, are wealth managers in the US who operate under a strict fiduciary duty. This means they are legally obligated to put their clients’ financial well-being above all else, including their own interests, which is why there’s growing interest in adopting this model in Canada. 

RIAs are the fastest growing wealth management channel in the United States. In 2020, about 17,650 RIA firms were managing roughly US$ 6.6 trillion in assets. This is up from 16,565 firms managing US$ 2.3 trillion in 2010, according to Boston-based investment research firm Cerulli Associates Inc. 

Industry research shows that the growth rate of the RIA channel, including hybrid RIAs, has increased by an average of 13.3% from 2015 to 2020, according to Schwab. 

The Canadian wealth management sector is keenly observing this transformative trend and recognizes the potential of the RIA model to redefine the advisory landscape. Innovation and partnerships are at the heart of this transition. Acquatio can help you navigate this evolving landscape.

For instance, Delisle Advisory Group, a newly independent firm catering to high and ultra-high-net-worth clients, has partnered with Purpose on its Advisor Solutions platform for its market leading technology and practice management services. This collaboration underscores the growing need for technology solutions that seamlessly integrate with a practice’s ERP and CRM systems.  

Moreover, the expansion of Q Wealth Partners, through a recent partnership with PWM Private Wealth Counsel in Saskatchewan, highlights the growing appetite for a co-op-like structure that prioritizes a client-first philosophy. This move not only expands Q Wealth’s national footprint but also reinforces the model’s viability and potential for success in the Canadian market. 

Q Wealth’s partnership with PWM comes hot on the heels of a deal struck with Arca Financial Group, earlier in the month. Arca, known for its holistic financial management, cited better technology infrastructure and institutional pricing through Q Wealth, as the drivers behind the deal.  

These developments signal a pivotal moment for Canadian wealth management.

Independent Financial Advisor Models

There is no right or wrong way to become independent. Each model caters to distinct personalities and aspirations. Some advisors aim to build their own firm, while others prioritize controlling their revenue, flexibility in client relationships, and hours, but prefer less administrative responsibility.

Fortunately, the independent firms’ space has matured significantly in recent years as thousands of investment advisors have successfully chosen the path to independence. Regardless of the option you choose, you can leverage Acquatio’s resources and support to help you make the transition.

Let’s explore the different paths to choose from:

Create an Independent Firm

The journey towards creating an independent firm is a strategic move to regain control and shape the way you serve your clients over the long term. For advisors with vision and ambition, building a business from the ground up offers unparalleled flexibility and autonomy.

The prospect of establishing an independent firm not only allows you to build a brand that reflects your values, but it also puts you in the driver’s seat and gives you complete control over your client relationships and business strategy. With this freedom, you have the potential to unlock unlimited growth opportunities and create a distinct path tailored to your goals and the way you want to serve your clients.

Join an Independent Firm

If you are not yet ready to become fully independent, you may want to consider joining an independent firm that allows you greater freedom in deciding which clients to work with and how to serve them. This way, you share ownership with an equity partner and have a degree of independence without bearing the full burden of running a firm yourself.

The appeal of joining an independent firm lies not only in the flexibility it offers but also in the well-established structures that facilitate seamless operations. Advisors can benefit from existing technology platforms, back-office support, and extensive resources, allowing them to focus more on their clients’ needs and financial goals without sacrificing the benefits of ownership.

Advisors can customize their approach, services, and strategies to meet the unique needs of their clients without being restricted by the inflexible structures commonly found in larger financial institutions.

The collaborative environment within an independent firm enables advisors to connect with like-minded professionals, sharing insights, best practices, and initiatives that contribute to the firm’s overall success.

Work with an Independent Firm

This alternative provides independent advisors with the tools and framework they need to serve clients, without having to build a brand-new firm from scratch. You can work independently, with the independent firm’s support behind the scenes.

Embarking on a collaborative partnership with an independent firm creates a synergy that brings together the best of both worlds. This unique approach strikes a balance where advisors maintain a significant degree of independence while enjoying the benefits associated with the resources and support systems of a larger firm. Advisors find themselves in a middle ground that combines autonomy with the benefits of a well-established structure.

This strategic alignment fuels innovation, fosters professional growth, and enriches the overall client experience.

When evaluating paths to becoming an independent financial advisor, it is important to consider both your current capacity for independence and your long-term vision and goals. While you may be mentally prepared to start your own business, you also need to consider the initial investment of time and money required to get started.

Explore which opportunity is right for you and your clients, with the support of an experienced team that is in your corner throughout the process. Acquatio will be your trusted guide in redefining your path, your client relationships, and your impact, every step of the way.