What to do with the consolidation of hybrid Broker/Dealer & RIA firms

With the continued consolidation of hybrid Broker/Dealer & RIA firms, it is becoming more challenging for independent financial advisers to find a firm that aligns with their business and ethical values.

Financial advisers are already positioned in an unenviable landscape. The challenges they face today present a complex landscape that represents the major reason for consolidation at the firm level. Increased regulatory scrutiny, rapid technological advancements, and evolving client expectations means advisers and firms must remain agile or get out of the way. Moreover, building and maintaining trust in an era of heightened cybersecurity threats and economic uncertainty requires strong client relationships and transparent communication.

So, is consolidation, possibly even monopolization, a good thing for financial advisers who have built a business and service where their values are the constant with everything else being variable? Most likely not, as larger, monolithic firms will be unable to honor individual values by their very nature.

The good news is that there are still a few smaller, independent firms left. Prior to responding in resignation and signing with the big firms, it would be prudent for financial advisers to seek out the smaller firms that have already weathered this major storm for at least a conversation.