Fidelity Introduces Tools to Help Advisors Go Independent
Fidelity has launched Independence Hub, an online library of resources and advice for advisors to help them navigate the decision-making process, educate them on leadership, and provide suggestions on their road to independence.
According to Fidelity research, which will be released in November, one in six advisors has changed firms in the last five years, with independent business models being the most popular destination.
The study found that 94% of advisors are pleased with their decision to relocate, with 85% reporting improved control over their future. Despite this, only 49% of advisors consider themselves educated about firm types and independent models, and only 25% are familiar with the numerous intermediaries that can assist in locating a company.
An RIA valuation calculator, a self-service tool for advisors to better understand the economics of being independent, and a white paper describing how to develop a tech stack are among the Independence Hub resources.
“Arming advisors with the resources needed to help expand their breadth of knowledge has always been a priority,” said Rohit Mahna, head of client growth at Fidelity Institutional Wealth Management Services.
Concurrent Advisors recently joined the Fidelity platform after their breakaway from Raymond James, transitioning over 60 advisor teams with more than 20,000 accounts.
“From operating on a broker-dealer platform and wanting to take the next step to becoming fiduciaries for our clients, Fidelity opened the menu of possibility in terms of solutions, technology, and growth opportunities,” said Nate Lenz, CEO and co-founder at Concurrent Advisors.
Top concerns for an advisor moving include compensation (51%); a better firm culture (50%); and the chance to provide a greater degree of client service (39%).
Fidelity is the nation’s second largest custodian, with around $1.5 trillion in RIA assets, trailing only Schwab and ahead of Pershing and LPL Financial. According to Cerulli, this group holds 84% of the roughly $6.9 trillion in RIA assets in the US.