• Home: Leading Financial Advisor Recruiting Firm
  • About Us
    • Meet the Team
    • Testimonials
    • Case Studies
    • Representative Deals
  • Services
    • For Financial Advisors
    • For Independent Business Owners
  • FAQs
  • Articles
  • Podcast
    • Industry Update
    • Independence 101 Series
  • In the News
    • Moves in the News
  • Tools for Advisors
    • Diamond Consultants Advisor Transition Report 2022
    • NEW – Edward Jones Advisor Transition Report 2022 edition
    • NEW – Merrill Advisor Transition Report 2022 edition
    • Merrill Information Hub
    • UBS Information Hub
  • Contact Us
  • Subscribe for Updates

Questions? Call us: 908-879-1002

Contact us...
Diamond Consultants: Financial Advisor Recruiting FirmDiamond Consultants: Financial Advisor Recruiting Firm
  • Home
  • About
    • Meet the Team
      • Mindy Diamond
      • Louis Diamond
      • Howard Diamond
      • Jason Diamond
      • Barbara Herman
      • Deborah Aronson
      • Wendy Leung
      • Cathy Nichols
      • Debbie Wallen
      • Allison Brunwasser
      • Joshua Tomolak
      • Shelley Muzio
      • Caryl Felicetta
      • Donna Riopel
      • Kelly Griffiths
    • Testimonials
    • Case Studies
    • Representative Deals
  • Services
    • For Financial Advisors
    • For Independent Business Owners
      • Sell-Side M&A Advisory
      • Consulting
  • FAQs
  • Articles
    • Subscribe for Updates
  • Podcast
    • Industry Update
    • Independence 101 Series
    • Subscribe for Updates
  • In the News
    • Moves in the News
    • Transition Announcements
  • Tools For Advisors
    • NEW – Diamond Consultants Advisor Transition Report 2022
    • NEW – Edward Jones Advisor Transition Report 2022 edition
    • NEW – Merrill Advisor Transition Report 2022 edition
    • Merrill Information Hub
    • UBS Information Hub
    • Other Tools
    • Subscribe to e-Newsletter

What compels breakaway advisors to go around “the wall”?

Mindy Diamond 8 traits for financial advisors

What compels breakaway advisors to go around “the wall”?

Posted by Mindy Diamond

Despite significant risks and roadblocks in front of them, breakaway advisors don’t stop. Why?

While the momentum towards independence seems to have increasing traction, the independent world is definitively not for everyone. To be sure, there are plenty of risks and roadblocks that would deter most advisors from leaving the security of their brokerage firms—and in many cases, far more than what might make them actually make the leap.

The risks of starting a new business aside, advisors are also besieged with concerns like leaving behind unvested deferred compensation, whether clients will follow or prefer a big name brand instead, and the work involved in building and growing a business. Certainly, these are considerations not easily cast aside, and many advisors will ultimately self-select out of the indy world because they represent hurdles that feel utterly insurmountable.

Yet the breakaway movement continues to grow, with advisors of all types jumping ship to build their own shops or join another independent firm. For these advisors, it’s as though they see the “wall of concerns” ahead, but they don’t stop; instead, they look for a way around it and forge ahead—despite the significant challenges before them.

So what is it that compels these advisors to make the move to independence?

In the past decade or so, there have been many breakaway test cases to assess, allowing us to gain an understanding of what’s really propelling this trend. While I’ve certainly shared much about what it takes to be independent and the key characteristics of an independent-minded advisor, this goes deeper—to a place that is far more visceral and instinctive. It’s a common ground that these advisors share, seated somewhere between mindset and determination, with these 8 attributes being the most pronounced:

  1. They have a fierce sense of autonomy.
  2. They possess a strong sense of confidence and self-belief.
  3. They maintain a certainty that there is a better way to service clients and grow their businesses—which becomes their true north.
  4. They have a real fire in their soul, a palpable sense of, “I can do this! I am doing this!”
  5. They portray genuine clarity of purpose; to them, doing anything less would feel disingenuous.
  6. They are big picture focused, unwavering in their conviction to do what’s right for clients.
  7. They are realistic—knowing and accepting that not every client will be winnable, and some clients might prefer an advisor at a big firm.
  8. And one of the strongest factors: They have a relentless amount of courage and grit.

At one point or another in their careers, most, if not all, breakaways explored the possibility of moving to another wirehouse, but ultimately chose to go independent instead. They declined big recruiting deals in return for freedom, ownership, customization, creativity, innovation and the ability to serve clients without the limitations imposed by compliance departments that manage to the lowest common denominator.

In a recent interview for my podcast series on independence, Dorie Fain, the founder and CEO of &Wealth, shared thoughts on this very topic which crystalized the intrinsic certitude of these folks. She said, “I have so much conviction about being independent, that people [clients] relate to my confidence and assuredness, and the importance of being independent.” And it’s that conviction that has driven the success of her firm for the past decade.

So the notion of “seeing the wall, but not being deterred by it,” is shared amongst the independent advisor community. The desire to build something that is better than what they had at a big firm is stronger than the fear that might hold them back. And as long as there is a flow of advisors who possess these traits, the movement towards independence will continue.

Additional Resources

Just how entrepreneurial are you?

Beginning with the end in mind

6 Key Reasons Why IBD Advisors are Moving to the RIA World

IBD vs. RIA: Which way should an advisor go?

You may also be interested in...

Share
0

About Mindy Diamond

CEO – By counseling advisors on how to ask the right questions and “dig deep”, she helps them look at all of the opportunities available to find the one that allows them to reach their full potential. That is, to best serve their clients and live a life that is in sync with their own beliefs and values. Learn more...

    Subscribe for Updates

    Get updated by email when a new article is added.


    Listen. Here. Now

    Recent News & Articles

    • Building Enterprise Value: A Coach’s Advice for Advisors and Teams
    • From Cold-Calling to $500mm Breakaway: A Former Merrill Advisor’s Team-Based Approach to Growth
    • Swiss Miss: Why UBS’s deal with Credit Suisse will threaten its hold on rich clients
    • As Wealth Managers Move To Diversify Customers’ Idle Cash, SVB’s Own Advisors Head For Exits
    • UBS’s recruiting website dances with forced Credit Suisse marriage and field leadership cuts
    Schedule a Complimentary Consultation
    We're available to answer your questions. Contact us

    Connect with us

    Search

    © 2023 · Diamond Financial Consultants, LLC t/a Diamond Consultants. All rights reserved.*

    • Leading Financial Advisor Recruiting Firm:
    • About
    • Services
    • FAQs
    • Articles
    • Podcast
    • News/Media
    • Tools/Resources
    • Contact
    • Our Locations
    • Privacy Policy
    • Site Map