The growth of the registered investment advisor (RIA) channel provides lessons for competing firms in how to enhance advisor retention and reduce attrition. Although firms in other channels might not be able to mimic the RIA playbook, modifying certain firm cultural and operational practices could help with long-term advisor 'stickiness,’ according to the latest Cerulli Edge—The Americas Asset and Wealth Management Edition.

The RIA channel continues to grow unabated, and its maturation has led to a gradual evolution that is changing its nature. Independent and hybrid RIAs have grown their assets under management (AUM) over the past decade at annualized rates of 10.9% and 12.2%, respectively, and have increased their share of industry assets by nearly seven percentage points combined, rising from 21% of total industry assets in 2014 to 27% in 2024. This growth has been driven largely by advisors defecting from other retail wealth channels to seek greater autonomy over how they run their practices, the economic benefits of firm ownership, and higher payouts.

“Advisor preferences clearly favor independence,” says Stephen Caruso, associate director. “71% of advisors say they would choose an independent channel if they were to switch. Additionally, 88% of independent RIAs say they are very likely to remain affiliated with their current firm over the next 12 months, and 97% indicate they would switch to another independent RIA if they did.”

Given the value of advisor assets that move annually—in 2025, Cerulli predicted that close to 9% of advisors, representing $3.1 trillion in assets, would change firms—advisor transitions should be seen by firms as an opportunity to build the infrastructure to attract the next generation of advisors.

“The evolution of the RIA channel highlights not only the competitive nature of advisor recruitment, but also the need for firms to proactively adapt their competitive positioning to align with what advisors seek: independence, autonomy, better support systems, and the ability to build long-term business value. Firms that treat advisor mobility as an opportunity will be better equipped to emerge as winners in the ongoing realignment,” concludes Caruso.