Fidelity releases online resource hub, tech stack support to help advisors go independent

As financial advisors continue to sing the praises of going independent, Fidelity is launching a new online resource to make that transition a little smoother. 

On Tuesday, Fidelity leaders announced the release of the "Independence Hub," billed as a suite of resources to help guide advisors through the various stages of independence, inform their decisions and be better prepared to make the move. 

The provided services include an RIA valuation tool to help advisors of all sizes understand their potential economics as they go independent, taking into account increases in earnings or revenue compared to their current models. The online valuation tool is a self-serve option for advisors who want a quick analysis.

To coincide with the release of the hub, Fidelity has also released a new paper providing guidance to advisors who need help building their tech stacks. The document is intended to establish a strong core tech stack that advisors can rely and build upon.

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"Arming advisors with the resources needed to help expand their breadth of knowledge has always been a priority," Rohit Mahna, head of client growth at Fidelity Institutional Wealth Management Services, said in a statement. "Fidelity is committed to leveraging its deep expertise to not only help educate advisors and provide the tools needed to facilitate better outcomes, but be a true collaborator as advisors look to build their businesses."

The Independence Hub makes its debut as new research from Fidelity Investments finds that 1 in 6 advisors have proactively switched firms in the past five years, with independent business models as the top destination. The report says 94% of advisors are happy with their decision to move, with 85% noting increased control over their future. 

Despite the positivity, only half of advisors consider themselves knowledgeable about firm types (54%) and independent models (49%), and only 25% say they know enough about the various intermediaries like recruiters, consultants, clearing or custody providers that can help with finding a firm.

Eighty percent of movers reported asset under management growth since switching, with a median increase of 42%. The Fidelity study also finds that nearly all advisors (99%) said their clients were ultimately supportive of their decision to move, with more than half (54%) noting they were immediately supportive.

Among the many factors influencing an advisor's decision to move, the top considerations include compensation (51%), better firm culture (50%) and the ability to provide a higher level of client service (39%). 

The most notable concerns are fear of the unknown (60%), client attrition (48%), and time spent transitioning vs. managing the practice (35%). However, 39% of advisors who moved reported that none of their initial concerns ended up being significant issues, and 68% agree they should have made the move sooner.

Fidelity's 2023 Advisor Movement Study was conducted in two phases; a qualitative portion consisting of 15 one-on-one video conference interviews with advisors who had recently switched firms or were considering doing so between April 21 and April 28, as well as a quantitative portion via an online blind survey.

Participants included 1,530 advisors who manage or advise upon client assets either individually or as a team and work primarily with individual investors. Advisor firm types included a mix of banks, independent broker-dealers, insurance companies, regional broker-dealers, RIAs and wirehouses.