Schwab Report: New RIA Firms Rise By 20% In 2017

Schwab Advisor Services released its analysis of SEC advisor registrations for 2017, which shows that the number of new advisors filing with the SEC as RIAs continued the strong growth trajectory seen in the previous year.

The Schwab analysis reveals that new registrations jumped 20% year-over-year.

Firms registered by the SEC grew by 59% over the last five years, from 150 new RIA firms in 2013 to 238 new firms in 2017.

Firms established in 2017 represented nearly $84 billion in AUM at the time of their registration.

According to Schwab, the new firms tend to be bigger than in the past, moving to independence at a considerable rate.

The number of firms with more than $300 million in AUM represents almost 30% of SEC registrations in 2017, up from 12% in 2013.

“A decade after the onset of the financial crisis, it’s evident that the independent model has flourished along with investors’ demand for fiduciary advice,” said Jonathan Beatty, senior vice president, sales and relationship management, Schwab Advisor Services.

“We are proud of our heritage of supporting independent financial advice. After more than three decades in the space, we remain committed to supporting those making the transition to independence with resources and expertise to set them on a course for long-term success.”


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