Is the Independent Advisor an Oxymoron?

These days, there has been an increasing confluence of advisors that are both fee and commission, that may also actively use technology via online programs, financial planning models and customer servicing to complement or supplement their business. So, where does this all leave us in terms of the future of the financial advice?

I believe, exactly where we want it to be. Despite growing concerns about national competitors utilizing advanced technology and sheer company size, there are several reasons to believe the RIA business will maintain the momentum that has yielded success in the past. 

RIABiz’s Brooke Southall offers a compelling rebuttal to Joe Duran’s column in InvestmentNews about the end of the independent advisor’s Golden Era.  Duran’s argument that…

•          Mega D2C

•          Super-advisors

•          Robo-advisors

•          Big banks and brokers

…would all spell disaster for RIAs is turned on its head in Mr. Southall’s piece, who reaches an entirely different conclusion: Mr. Southall believes that after 25 years of growth, it is still only the beginning for RIAs. 

Mr. Southall argues that advisory businesses with scale and momentum are not enough to outweigh the advantages of smaller standalone RIAs like flexibility, personalized service and offerings not to mention the significant “billions of dollars” rolling around the consumer’s wallet.  Duran’s concerns are reminiscent of past threats to the RIA model that have since waned or better yet, enhanced and strengthened the advisory model including the fiduciary standard.

Read Southall’s response to Duran’s “four formidable forces” that are creating the big squeeze for the standalone local advisory firm here.