Change Agent: Frank Smith, Private Advisor Group 

We’re talking to leaders about significant changes in the industry and their organizations – progress regarding product, process, technology, or culture. We’re curious about the how and the why. And we’re asking about what changes are next. 

We asked Frank Smith, CEO Private Advisor Group, a Morristown, NJ-based financial services firm with over $28.5 billion in assets under management, about guidance offered to the next generation of financial advisors, key components necessary for making substantial advancements inside the firm and the industry, and how to successfully transition from established methods to exploring new frontiers inside the organization. 

Guiding the Next Generation: As we acknowledge the industry’s rising stars, what guidance can you offer them to become catalysts for positive change?   

To guide the rising stars in our profession, we must foster a mindset of continuous improvement and lifelong learning. Encouraging ongoing education, mentorship, and development opportunities keeps advisors ahead of industry trends and innovations, helping them to grow and excel. 

At Private Advisor Group, we’re embracing a shift from the traditional independent model to what we call “supported independence.” This approach blends entrepreneurial freedom with the resources, support, and scale of a larger organization, offering the best of both worlds. It’s an especially attractive option for next-gen advisors, allowing them to maintain their independence while benefiting from time-tested strategies and support. 

This approach creates the capacity to focus on the delivery of more personalized, high-quality service, which leads to better client outcomes and overall industry growth. 

And finally, plan ahead! Planning is a huge catalyst for positive change for all generations. Like any long-term relationship of value, invest in your future, the future of the practice, and the protection of your life’s work early and often. Especially when times are good, and not only in reaction to something or under duress. Don’t wait for the perfect moment – start planning for tomorrow, today. 

Charting a New Course: How do you navigate the transition from established practices to pioneering new frontiers within your organization?   

At Private Advisor Group, we help established practices transition from traditional norms, to unlocking what they are really trying to solve for – freedom and independence in a way that remains relevant to them and their clients. An example of this is with smaller RIAs, who have the freedom to build and operate practices based on the clients’ needs, in a conflict-free way. However, as the profession evolves, the costs and complexities of running an RIA can detract from the original purpose, leaving advisors time and energy to be spent on administrative or less rewarding tasks. 

To address the operational and compliance challenges faced by RIAs, many choose to wind down operations and integrate with larger firms like ours. We offer the tools, guidance and collaborative support needed to transition smoothly, ensuring day-to-day operations remain efficient so advisors can focus more on their clients and business growth.  

We do this while enabling these firms to maintain their freedom, independence, culture, and branding – in other words, what their original objectives were. Our scale also provides cost savings compared to what individual businesses can often secure, especially when it comes to custodian relationships or technology. 

Aligning our interests with those of our advisors is a cornerstone of what we do. We offer advisors who join Private Advisor Group the opportunity to voluntarily participate in our Alignment & Equity program, an exclusive, jointly owned growth partnership entity that invests in our collective success. This is a key differentiator for Private Advisor Group as many advisors are looking for ongoing equity solutions that can help them finance growth opportunities now and succession plans for the future. 

With one of our core values being to adapt and reimagine, we hire innovative problem solvers who are skilled at curating and creating solutions like this program that enhances the advisor’s experience. This approach sets a new standard for excellence and adaptability in our evolving profession. 

Catalysts for Change: What are the essential elements for achieving significant progress within your organization and the industry? 

Succession planning is essential for progress in our profession. Practice disruption is one of the most meaningful drags on progress. While more advisors recognize this as a priority, those who don’t risk jeopardizing their practices and teams’ future. Succession planning is not just about preparing for eventual transitions; it’s about securing the continuity and stability of a business. At Private Advisor Group, we’ve been proactive about this, and it’s been very rewarding to our business. 

A good succession plan keeps the business’s value intact and prepares the next generation of leaders to carry on. Life is unpredictable, and a solid succession plan prepares the business for unforeseen events such as illness, death, or the sudden departure of key team members.  

For family-owned financial practices, which are common in the independent space, having a documented plan helps avoid conflicts and ensures that transitions are handled smoothly, maintaining family harmony. 

Succession planning isn’t just about finding a replacement; it’s about building a resilient organization that can thrive long-term. This approach not only protects the future of our businesses but also sets the stage for strong, sustainable growth for the next generation of advisors.  

Pictured: Frank Smith, CEO Private Advisor Group

Click here to see the full Change Agents: Leaders Driving Progress series