Start Your Own Registered Investment Advisory (RIA) Firm
A registered investment advisory (RIA) firm allows you to provide investment advisory services to clients using asset management fee pricing or a retainer. Advisors who are entrepreneurial and want to create and manage their own firm may select this business model. As an independent RIA, you make all of the decisions for your business, and receive the maximum economic and reputational benefits from those efforts. With this reward also comes greater risk and challenges. For example, you will be responsible for managing all of your new firm's operations including staff, technology, and operational needs, as well as legal and compliance requirements.
With a five-year track record of 18.7% growth in assets under management (AUM) and high equity valuations, independent RIAs continue to attract some of the best advisors in the business. There are approximately 11,000 RIAs registered with the Securities and Exchange Commission (SEC), which regulates this part of the industry. These firms range in size from the most well-known RIAs to small, one-person firms. In total, independent RIAs have over $2 trillion in AUM with an average of $250 million per advisor, making this a highly attractive business model.1
