Are you thinking about breaking away and launching your own RIA or joining an existing RIA? How do you sort out all of the information? Should I become an RIA or go Hybrid? Which Custodian do I use? How do the aggregators work? What is going to be the impact of Dodd-Frank and fiduciary harmonization, and how is it going to change the RIA regulatory environment in the future?
These are all difficult and complex questions, and there isn’t much information available to help evaluate the pros and cons as most people are only discussing the pros of being an RIA. Depending on your practice, there are some significant cons that should be understood before making this decision. Becoming an RIA can be even more costly than changing B/Ds, and making the wrong decision can be detrimental to your business.