Breakaway Advisor: Unlock Your Next Chapter at an Independent RIA

A breakaway advisor, also known as an advisor lift-out, refers to a financial advisor or group of advisors leaving a larger firm, like a wirehouse or bank, to join or establish an independent practice. This move is often driven by the desire for greater control, flexibility, and the ability to offer more personalized services. 

Registered Investment Advisors (RIAs) are independent advisors focused on personalized, fiduciary-based financial advice. Big banks offer a wide range of financial services, including wealth management, but may prioritize selling other products. Wirehouses are large firms that provide advisory services but often have potential conflicts between client needs and company goals. 

Breakaway advisors are leaving wirehouses for RIAs to gain more autonomy and flexibility in serving their clients without the constraints of a large corporate structure. They are also drawn to the fiduciary model, which allows them to prioritize clients’ best interests over selling proprietary products. 

The Broker Protocol is an agreement among participating financial services firms that provides guidelines for financial advisors moving between member firms. When both firms participate, an advisor may be able to take certain client information when transitioning to a new firm. Whether the Protocol applies depends on the firms involved, the advisor’s employment agreements, and the specific circumstances of the move. 

Clients generally have the choice to remain with the wirehouse or move with their financial advisor to a new firm. An advisor’s ability to contact and transition clients depends on applicable agreements and restrictions. Cresset works with advisors before and throughout their transition to understand these requirements, prepare for client outreach, and provide dedicated support for account opening, asset transfers, and onboarding to help make the transition as seamless as possible for advisors and their clients. 

The timeline for transitioning from a wirehouse to an independent RIA depends on the size and complexity of an advisor’s practice, prior firm, client relationships, and applicable employment restrictions. At Cresset, transition planning begins well in advance of an advisor’s move. A dedicated transition team helps advisors prepare their practice and supports their team and clients through account opening, asset transfers, and onboarding to help minimize disruption. 

Yes. Cresset advisors are equity holders and owners of the firm. Advisors may receive Cresset equity as part of the economics of joining, allowing them to participate in the long-term growth and value of the firm they are helping build. This ownership model is designed to create long-term alignment between Cresset and its advisors. 

At Cresset, advisors have the opportunity to monetize the business they have built and become owners of the broader firm. Advisors may receive Cresset equity as part of their overall economics, allowing them to participate in the long-term growth and value of Cresset as they continue to grow their businesses. 

An RIA, or Registered Investment Adviser, operates under a fiduciary standard and typically gives financial advisors greater freedom to choose the investments, custodians, technology, and services that best fit their clients. A wirehouse offers the scale and resources of a large financial institution through a more centralized platform, which can come with greater firm-level requirements and restrictions. An independent broker-dealer gives advisors more independence than a traditional wirehouse while providing brokerage, compliance, technology, and other infrastructure.