RIA Growth Is Just Getting Started, CEOs Say

• Of $400 billion that moved from banks to independent channels last year, $300 billion came from clients independently seeking fiduciary advisors (4x larger than breakaway advisor movement)
• A projected 100,000-advisor shortage combined with a 50% drop in CPA exam participants over 5-8 years is creating structural advantages for scaled RIA platforms
• As AI standardizes investment decisions and portfolio management, advisors' value is shifting toward emotional intelligence and psychological guidance rather than investment selection

Summary: RIA Growth Momentum and Industry Transformation

Industry leaders at Goldman Sachs' RIA Professional Investor Forum declared that registered investment advisor (RIA) growth is accelerating, driven primarily by clients independently moving from banks to fiduciary advisors rather than advisor defections.

Key Figures and Trends

Of approximately $400 billion that migrated from banks and brokerages to the independent channel last year, only $100 billion moved with breakaway advisor teams. The remaining $300 billion came from organic growth as clients independently sought fiduciary-based advisors—a "breakaway client" movement four times larger than advisor migration.

Hightower Advisors' direct-to-consumer brand, Hightower Signature Wealth, launched in October and currently holds $30 billion in assets, with expectations to reach $50 billion by year-end. NewEdge Wealth reported 11% organic growth for advisors last year.

Critical Challenges

The industry faces a projected shortage of 100,000 advisors, while CPA exam participation has declined 50% over the past five to eight years. This talent crunch favors scaled RIA platforms capable of cultivating professional pipelines.

Market Implications

Panelists emphasized that AI-driven automation is standardizing portfolio management, shifting advisor value from investment selection to emotional intelligence (EQ). The "advisor-as-psychologist" model is emerging as the primary value proposition, with top advisors potentially commanding higher fees for behavioral coaching rather than returns.

Dynasty Financial Partners is deploying an AI avatar within 100 days to handle client education, exemplifying how firms will leverage technology while preserving human advisory relationships.

The consensus: migration from traditional firms to RIAs remains a "one-way street" with no reverse flow, positioning independent advisory for continued expansion despite talent constraints.