Regulation Update: The rise of RIAs — a shift away from FINRA
by AdvisorLaw
In recent years, a significant trend has emerged in the world of financial advising. An increasing number of financial advisers are making the bold decision to part ways with their FINRA (Financial Industry Regulatory Authority) member broker/dealer firms and, instead, opt to start or join a registered investment adviser (RIA). This transition has been fueled by several factors, including regulatory changes, the allure of independence, and the growing realization that the RIA model may offer a more client-centric approach to wealth management. In this article, we’ll delve into the reasons behind this shift, using data from the Investment Adviser Industry Snapshot 2023, and explore why financial advisers are choosing to embrace the RIA model.