Six surprises advisors face when launching their own RIA

Advisors who leave wirehouses and banks to start independent registered investment adviser firms report a range of operational, compliance and emotional challenges as they take full responsibility for their businesses.

Data from ISS Market Intelligence show wirehouses and insurance carriers each lost about 8,000 representatives between 2021 and 2025, and nearly 39,000 representatives changed firms in 2025. Many advisors who moved cited higher revenue retention and greater flexibility as reasons for leaving.

Founders report an adjustment to autonomy. At large firms, routine decisions often required supervisor approval. As owners, advisors must now make choices about hiring, product selection and client communication without a corporate approval process. Brad Wales, founder of Transition To RIA, noted that new owners frequently need to stop seeking permission for actions they used to escalate.

Starting an RIA expands business options. Advisors who previously worked with a limited set of firm-approved investments and tools find many more choices after going independent. Wales estimated advisors who once had a few hundred approved alternatives may discover more than 1,000 options when they evaluate custodians, platforms and third-party providers on their own.

Becoming a firm owner also affects local business relationships. Matthew Liebman, founding partner and CEO at Amplius Wealth Advisors, described how founders can receive different treatment at events for business owners and develop peer networks centered on running a firm and serving clients.

Operational tasks often exceed expectations. Founders must find and fit office space, register the RIA with the Securities and Exchange Commission when required, secure insurance and transfer client assets. Andrew Schiff, CEO and partner at TritonPoint Wealth, described the launch period as intense and time-consuming, saying he could not have anticipated how much work was involved.

Compliance and recruiting require sustained attention. Advisors who left firms with in-house compliance teams now shoulder those duties themselves or pay for outside support. Schiff, who previously worked at Goldman Sachs, reported compliance became a major responsibility for his small leadership team. Hiring and onboarding staff moves more slowly without a large firm’s infrastructure, while control of the profit-and-loss statement gives founders latitude to be selective about new employees. Liebman said his firm began with six people and added new hires gradually.

Emotional strain is common during transitions. Moving client relationships and explaining the change can be stressful. Schiff recalled an initial period of nonstop work and long hours during client transitions. Liebman expected more resistance than he received; many clients responded simply and proceeded to sign transfer paperwork. He recommends keeping client conversations focused on the specific impacts to their finances and making the transfer process straightforward.

The data show substantial movement of advisors away from large channels, and founders report the issues above as common experiences when launching independent RIAs.