According to a review of public data, Registered Investment Adviser (RIA) providers have realized significant growth in clients and assets under custody. The pace of RIA growth has allowed new participants to enter the industry even as the largest incumbents have maintained their relative control.
According to Investment News, all firms that submitted data reported year-over-year growth in RIA assets under custody. Several firms also reported asset growth exceeding that of the major stock indices, indicating strong organic growth.
Rich Steinmeier, managing director and divisional president of business development at LPL Financial, stated, "LPL repositioned its custodial offering over the past year in response to growth in the RIA channel." Steinmeier added that the firm recognized a unique opportunity for a custodian to provide an integrated experience and deliver upon the promise of partnership, service, and support.
A review of the Securities and Exchange Commission's (SEC) filings reveal that the four largest traditional custodians have maintained their market share over the past two years. The regulatory data provides a snapshot of major custodial accounts, specifically those representing a significant portion of a relatively sizeable advisory business.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.