Continued consolidation has radically transformed the landscape of choices for elite financial advisors with an entrepreneurial fire in their belly. All too often, independent advisors feel trapped by what they believe are restrictions on the types of wealth management firms they can join.

For these advisors, it may seem like they have only three real choices: First, partner with an RIA consolidator who, ultimately, can control how the practice grows. Second, go freelance with a large IBD enterprise—or warehouse firm, as they are increasingly known—that offers large upfront payments but limited flexibility defined by cookie-cutter solutions and services. Third, they can do it alone by setting up their RIA in a full Do-It-Yourself approach, taking on all the compliance, technology and other responsibilities that don't directly generate revenue and consume huge amounts time, energy and capital.

Here's the problem with this approach: It's not just a no-win situation for many people—it's an incomplete set of options.

Moving beyond the divide into a new era

For years, we've heard about the need for disruption in our industry – we've moved beyond that into a new era for wealth advisory services. Demographic shifts, changes in consumer behaviors, digital innovations and increased expectations can highlight the huge gap between financial advisors and the clients they need to serve. It makes no sense for elite, entrepreneurial advisors to sell their businesses now or limit their opportunities with large firms only interested in their bottom lines.

Advisors serving more sophisticated and demanding clients who have made the increasingly popular decision to become independent wealth management business owners need the freedom, flexibility, control and choice to make complex decisions about increasingly demanding customers. To build on these four pillars of mission-critical success, these advisors need a partner to help them take full advantage of what could be the most impressive period of growth our industry has ever seen.

Freedom & Flexibility

Moving on from a wire can be difficult, especially for top advisors who have achieved a certain level of success working in the captive model. There is an understandable inertia and a sense of security to stay in a stable, often well-paid situation. There is also fear of the unknown.

However, the best wire advisors have built their practices and reputations over the years by attracting the best clients. In today's environment of changing client demographics and heightened expectations of service providers, these once-stalwart clients want more from their advisors. To maintain their best relationships in the near and long term, advisors will need the freedom to make decisions that are in their client's best interest and the flexibility to offer investment solutions that may not be available within the wires.

control

Once an advisor or team leaves the office or bank, they need to ensure their new home enables this newfound freedom and flexibility, giving them the control they need to run their businesses as they see fit. themselves, their staff and most importantly, their customers.

Independence has become so attractive to many because digital technology, third-party asset management solutions and other resources have leveled the playing field, allowing advisors to safely cut the cord with wire stock or IBD. However, providing access to a new tool and services in a truly independent environment is only useful if the firm allows a control advisor to ignore it all and run their business the way they want.

Choosing

Without the critical element of choice, top advisors cannot get everything they want in a firm. They often get stuck in the wrong structure or culture because they are not presented with all the options when making their decisions.

Freedom, Flexibility, Control and Choice

All four elements will usher in a fundamentally different era within the independent wealth management industry – one marked by a supported but unfettered independence. I fully expect this to be the future model, with consolidators, wires and warehouses falling away in favor of a structure that drives growth, delivers results and allows advisors to build their businesses, capital and futures as they wish.

Adam Malamed is the CEO of Sanctuary Wealth.