Fidelity Rolls Out Roadmap for Breakaway Brokers

Fidelity Investments’ Registered Investment Advisor Group (FRIAG) launched an online planning tool on March 28 at http://ria.fidelity.com that allows wirehouse brokers and independent broker/dealer reps to map a customized plan for shifting their practices to an RIA model. FRIAG Executive VP Scott Dell’Orfano says that the free site was built with input from about 400 firms that have made that transition through Fidelity. Benchmark data at the site on likely expenses and revenues that such advisors could expect during and after their transitions was provided through a partnership with Moss Adams. Some 200 such “breakaway broker” firms made the switch to RIA status in 2005 through Fidelity, according to Dell’Orfano. “We can play the role of a consultant” to these advisors, he says, noting that many of these breakaway brokers are “corner-office teams” with significant books of business who are attracted to the fully independent business model because they want to build a brand, have an entrepreneurial bent, and want the freedom to pick the most appropriate products and services for their clients.