While firms like Wells Fargo Advisors and Goldman Sachs expand their independent offerings, Merrill Lynch and Morgan Stanley so far have refused to offer an independent platform, instead remaining focused on their traditional employee-based models, according to AdvisorHub.

Merrill Lynch, home to roughly 11,000 veteran advisors and 2,000 trainees, has confirmed it will not launch an RIA custody platform. Similarly, a Morgan Stanley insider dismissed the notion of opening a competing channel, citing no business logic in undermining its 15,000-advisor workforce. According to AdvisorHub's source, Morgan Stanley's advisors join for the firm's scale, infrastructure, and support—free from concerns like office management or operational logistics.

According to AdvisorHub, industry experts note the reluctance of wirehouses to embrace independence lies in economics and control, particularly related to advisor compensation. Independent models pay advisors a larger share of generated revenue, cutting into firm profitability.

Regional firms like Stifel Financial have dipped their toes into independence. Stifel revamped its independent channel in 2021, though its CEO has since softened the focus. Meanwhile, LPL Financial and Raymond James continue to blur the lines, offering multiple affiliation models that attract advisors from both ends of the spectrum.

Goldman Sachs entered the RIA custody space in 2020, viewing it as a product distribution opportunity rather than a threat to its captive wealth advisors, according to AdvisorHub.

Wells Fargo, while acknowledging that the independent channel yields lower margins, has leaned into its Financial Network division to recapture assets that might otherwise follow breakaway advisors.

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