Why RIAs raid other RIAs for talent
July 31, 2020
Louis Diamond Quoted
By Ian Wenik
A new study from Charles Schwab indicates that RIAs are increasingly looking amongst themselves for new talent.
According to the RIA custodian’s 2020 RIA benchmarking study, other RIAs were the most popular source of talent for advisory firms with more than $250m in assets under management. Schwab found that 39% of respondents to its survey — which contained self-reported data from 1,010 firms — recruited staffers from fellow independent advisory businesses in 2019.
Why go to other RIAs? It may be a matter of convenience, explained Louis Diamond, an executive vice president at advisor recruiting firm and consultancy Diamond Consultants.
‘Recruiting an RIA advisor (non-owner) is often the best fit for RIA hires as they are paid in a similar fashion, aren’t expecting big upfront deals, are used to the team based culture of an RIA, and if they are bringing a book they often do not have to repaper as they can retain the same custodian,’ Diamond said.