Independent broker-dealers are grappling with a challenge: the departure of breakaway advisors to registered investment advisory (RIA) firms.

According to a study by Cerulli Associates, nearly one-third of advisors at independent broker-dealers have contemplated launching their own RIA in the past year. As reported by AdvisorHub, advisors are attracted to the independent RIA segment by the potential for higher payouts, greater control over their practice, and the opportunity to build equity.

The share of assets controlled by RIAs has increased by 7.2 percentage points over the last decade, reflecting the growing allure of this segment. According to AdvisorHub, independent broker-dealers such as Commonwealth Financial, Raymond James Financial, and LPL Financial have responded to this trend by expanding their RIA custody channels to retain advisors who might otherwise depart.

Interestingly, according to Cerulli, almost 36 percent of independent advisors considering a move to an RIA indicate that they may maintain their affiliation with their current broker-dealer after establishing their own RIA.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.