Custodian and wealth platform Altruist is working on a turnkey offering to help advisors break out on their own.
"Over the past 7 years we've onboarded over 6,000 advisors to the Altruist platform," Altruist founder and CEO Jason Wenk posted on LinkedIn last week. "Independent advisors building their own business, serving their clients, and doing so on their own terms. We've also met with hundreds of advisors not yet independent, with dreams of running their own RIA, but they never make the leap.
"We decided to offer a first-of-its-kind solution for these advisors. A low-cost, simple path to independence, directly through their custodian. So when they're ready to launch their own RIA, it's turnkey for them and their clients. No re-papering, new logins, or lost data. We're in beta the next few months and will share full details soon," he wrote.
"More independent advisors creates more small businesses. Which is good for the industry, the communities we serve, and people who need advice," Wenk said. "More to come in a few months!"
The CEO cited several reasons why advisors may delay going independent, including cost and complexity associated with registering, nervousness over the compliance burden, managing billing and overwhelm over working with vendors.
"Some will think about joining an independent broker/dealer, but aren't compelled by the opaque pricing, old technology, and having to eventually move their clients a second time when/if they launch their own RIA," he wrote.
The firm recently filed with the Securities and Exchange Commission to form Altruist Advisors, which is in beta with an anticipated broad launch in the fall and awaiting regulatory approval, a spokesperson for Altruist told ThinkAdvisor in an email Tuesday.
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