Thinking of going independent? How smaller RIAs can win despite disruptive tech

investmentnews.com:

The list of financial advisors deciding to take greater control of their practices with an independent RIA firm is ever growing, but is now a good time to take the plunge?

Despite current economic challenges, together with the disruptive impact of technology including artificial intelligence and embedded finance, the business development director at Advisory Services Network sees great opportunity.

Trey Prescott has shared his insights with InvestmentNews, providing a view of the landscape for smaller RIA firms, a key focus for the firm which now boasts advisors with almost $7 billion AUM, growing from $5.2 billion twelve months ago.

ASN was founded by Tom Prescott and Dave Paulukaitis, who began providing consultancy services to the industry at Mainstay Capital Market Consultants more than 20 years ago and has evolved over time to focus mostly on RIAs rather than broker-dealers.

Recently ASN has engaged with an increasing number of advisor groups, 184 in 2022 and more than 260 in 2023, with over 30 groups and/or individual IARs launching their own practices to attain independence.

“ASN envisions this trend not only continuing but gaining momentum,” Trey Prescott said. “Advisors are recognizing that they have access to a comprehensive list of tools and services which allows them to transition away from wirehouses, IBDs, or RIAs that no longer align with their needs. Further, the economic benefits are being felt exponentially.”

Prescott believes that there is opportunity for those who have a thirst for gaining autonomy and being the architects of their own success.

“The RIA space serves as a powerful role model for entrepreneurial success, fostering the creation of enduring businesses for advisors and laying the