In 2025, roughly 10% of financial advisors are expected to transition their practices, either by consolidating or switching firms. This increase in advisor movement and M&A activity makes it paramount for firms and advisors to maintain a message to clients around continuity and succession, according to new research from Cerulli Associates and 55ip.
According to the new research, approximately one in 10 advisors expect to switch firms during the year, seeking greater autonomy and better technology. In fact, technology was cited as one of the primary factors for advisors who changed from one broker-dealer to another. But advisors switching firms can be costly: those advisors who do lose about 22% of assets, while those moving to independent firms lose 18%, and intra-independent firm moves result in an 11% loss.
Additionally, more than one-third of all advisors are looking to retire. Over one-third of advisors - representing 41% of industry assets - are expected to retire within the next decade. Among them, 15% plan to sell their practices externally, a figure that rises to 33% for independent RIAs, according to the research. InvestmentNews has previously reported the shortage in adviisor talent that will be needed over the course of the next five years to match client growth.
The independent RIA channel has grown rapidly over the past decade, attracting outside investment and driving a wave of M&A activity. By 2028, one-third of all financial advisors are expected to operate within the RIA space, with many leaving broker-dealer firms. The transition enables advisors to pursue higher payouts as well as the chance to build equity in their own enterprise.
Consolidation within the RIA market is accelerating, with large firms - $1 billion AUM and more - now controlling 74% of the channel’s assets, thanks in part to their strong compliance support and integrated technology platforms.
Despite concerns about autonomy and operational transitions, many advisors find the benefits of joining RIA consolidators compelling, according to Cerulli. Transition assistance is increasingly important to advisors, and affiliation with a consolidator can offer access to a broader network for succession planning as well. Competitive tech integration and centralized services are increasingly viewed as strategic advantages for independent advisors seeking long-term growth.
A significant portion of retiring advisors - especially among independent RIAs - plan to sell their practices externally, though many lack a clear succession plan. To maximize value and ensure client retention, advisors must develop transition strategies that emphasize continuity, build trust, and showcase improved service offerings. A well-executed transition can preserve assets and enhance the overall appeal of the practice to potential buyers.
There is a strategic opportunity for wealth management firms to support advisors through seamless, tax-aware transitions. The risk of asset loss and operational strain during practice changes is significant, but with dedicated support and technology, firms can improve client retention and accelerate growth, Cerulli research noted.
A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.
Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.
After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.
The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.
An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
