"Breaking away" means leaving an employee-model firm to launch or join an independent RIA. It's one of the most rewarding moves an advisor can make, and one of the most complex. Here's the general roadmap.
1. Choose your structure
- Join an existing RIA: the fastest path, with compliance and operations already in place.
- Use a supported-independence platform: run your own RIA with outsourced compliance, technology and back office.
- Launch your own RIA from scratch: maximum control and equity, and maximum responsibility.
- Hybrid: add a broker-dealer affiliation if you need to keep commission business.
2. Registration and licensing
A new RIA generally registers with the SEC or with state securities regulators depending on its assets under management, files Form ADV, and needs appropriately licensed investment adviser representatives (for example, Series 65 or 66). Use a compliance consultant or attorney for this step.
3. Custody, technology and operations
Select a custodian, then build your technology stack: CRM, portfolio management, financial planning, billing and cybersecurity. Plan staffing early, since your support team is critical in the first 90 days.
4. Protect your cash flow
Revenue often dips while accounts transfer. Budget for launch costs, a transition gap and the deferred compensation you leave behind. Some platforms and investors offer transition capital.
5. Plan client communication carefully
Your employment agreement, any non-solicit terms and whether your current firm participates in the Broker Protocol all shape what you can do and when. See our Broker Protocol guide and get legal advice before resigning.
Weighing a breakaway? A recruiter can introduce you to RIAs and platforms that fit, confidentially. Start here.