A new Impact Report from Aite Group, LLC analyses the Registered Investment Advisor (RIA) business model with particular focus on practice sizes and growth, client segmentation, revenue and product composition, and practice management and compliance.
RIAs have experienced a healthy growth rate, adding approximately 10 percent annually since the last market downturn of 2001. Going forward, RIAs will fare even better, expecting a growth in client assets of 21.1 percent. Dual-registration has become increasingly more popular amongst RIAs (44 percent of the surveyed population).
“The Registered Investment Advisor market has been a big success story within the wealth management industry,” says Alois Pirker, senior analyst at Aite Group and author of the report. “Setting up an RIA firm allows advisors not only to become independent, but to implement the type of firm that allows them to best-serve their clients. The growth experienced in the RIA market clearly shows that clients appreciate this approach.”