Independent registered investment advisers continue to attract advisers and clients from large broker-dealers, putting custodians at the center of the competition for that business. Wells Fargo, LPL Financial, RBC, Raymond James and Goldman Sachs are all expanding services for outside RIAs, drawing on different business models and resources. Advisers weigh brand recognition, technology integration, service records and fees when choosing a platform.
XML Financial uses both Fidelity and First Clearing
Brett Bernstein, CEO and co-founder of XML Financial Group, has worked in wealth management for nearly 30 years, including roles at Merrill and LPL Financial. Based in Bethesda, Maryland, XML is a multibillion-dollar RIA and an indirect, wholly owned subsidiary of Focus Financial Partners. Its RIA business uses Fidelity Investments as custodian, while its broker-dealer, XML Securities, works with Wells Fargo’s First Clearing for clearing and custody.
XML established its First Clearing relationship after acquiring another Focus-affiliated firm in 2019 and bringing that firm’s broker-dealer into its business. Bernstein said XML has 25 advisers across five offices and manages $4.3 billion in client assets. Running both an RIA and a broker-dealer, with separate custodians, adds operational complexity. But he said the arrangement lets the firm serve clients with different investment needs and levels of complexity, and acquire advisory teams without requiring clients to change custodians.
Bernstein noted that every custody relationship has its share of problems. In his view, Wells Fargo recognizes that retaining advisers can be more valuable than repeatedly losing them and trying to win them back.
Five custodians build on different business lines
The five firms do not disclose complete figures for their RIA custody businesses, which remain difficult to compare with the scale of Fidelity and Charles Schwab. Still, each has established a sizable presence in the market for outside advisers. Jodie Papike, CEO of recruiting and executive-placement firm Cross-Search, said these firms can draw on existing platforms and resources rather than build a custody business from scratch. Larger institutions can also offer advisers a wider range of affiliation and partnership structures.
William Trout and Gregory O’Gara of consulting firm Datos Insights said Schwab, Fidelity and BNY Pershing compete for independent advisers primarily on scale, technology and support. The five firms in this group, by contrast, have built custody businesses around their existing adviser, client or product ecosystems. Goldman Sachs sees custody as a way to connect with its capital markets, lending and asset-management businesses. Raymond James uses it to retain advisers who choose to operate independently, while LPL has extended its established business channels.
These arrangements differ from hybrid RIAs, where advisers operate with some independence but also register as broker-dealer representatives of the affiliated firm. Large wirehouses Merrill, Morgan Stanley and UBS face a different dynamic: their outside custody businesses can serve advisers leaving the traditional model for independence. Morgan Stanley divested the custody business of its former Trust Company of America in 2021. Previously known as E-Trade Advisor Services, it is now Axos Advisor Services. Goldman Sachs acquired Folio Financial in 2020 and has continued recruiting RIAs; Creative Planning, which acquired United Capital in 2023, also uses Goldman’s custody services.
Wells Fargo has taken a different approach among the wirehouses. Its Wells Fargo Advisors Financial Network is one of the largest independent broker-dealer businesses, while First Clearing also serves Robinhood-owned TradePMR. Datos Insights’ Trout and O’Gara said Wells Fargo plans to launch a unit dedicated to outside RIAs. As advisers move from traditional brokerage models to RIAs, custody services give firms a way to preserve some client and business relationships.
LPL reports $358 billion in independent RIA custody assets
LPL Financial said it held $358 billion in independent RIA custody assets at the end of the second quarter of 2026. The company publishes a standard schedule of account and service fees, but has not disclosed how much of those assets come from independent RIAs with no LPL-registered representatives. Marc Cohen, LPL’s managing director and chief growth officer, said the firm has provided custody, clearing, technology, service and business support to fee-based and hybrid RIAs since 2008.
Cohen said LPL earns custody-related revenue from several sources, including trading activity, cash sweep programs, loan interest, product-related revenue and custody or platform fees. He also said the company does not sell proprietary investment products or receive payment for order flow. LPL serves advisers rather than competing with them for end clients, Cohen said, and supports different business structures, including independent RIAs, corporate RIAs, hybrid practices and fee-only firms.
RBC’s outside custody business dates to the launch of RBC Clearing & Custody in 1979. The company said it now serves more than 300 institutions in the United States and select international markets. Clients include advisers leaving large firms, start-ups, wealth managers, asset managers, dual registrants and institutional clients.
RBC highlights service consistency, its parent company’s financial strength and its technology resources. The firm said its Minneapolis technology team provides technology planning, implementation, training, support and data analytics. Fees are set individually based on each firm’s business model and plan.
Wells Fargo plans December launch of RIA Solutions
Erik Karanik, Wells Fargo’s head of independent solutions, and Leann Markovitz, head of First Clearing, said First Clearing has served independent broker-dealers and RIAs for about 40 years. Wells Fargo plans to launch RIA Solutions in early December, making it the third part of its independent-adviser business alongside FiNet and First Clearing. Karanik said the move reflects advisers’ shift toward the RIA model and is intended to support those seeking more control over their businesses and client experience.
The executives did not disclose the size of First Clearing’s custody business. Karanik said it is roughly in the next tier, comparable to Apex Fintech Solutions and smaller than Schwab, Fidelity and BNY Pershing. First Clearing does not publish a standard fee schedule. Markovitz said pricing is negotiated based on a firm’s business model, service needs and actual usage. Wells Fargo entered the RIA channel through a 2019 partnership with TradePMR; the new unit will be served directly by Wells Fargo.
Synergy moves custody from Pershing to Goldman
Competition among custodians ultimately comes down to how well a platform fits an individual advisory firm—and what it can negotiate. Synergy Financial Group, a San Ramon, California-based firm with nearly $1 billion in client assets, has long worked with multiple custodians. Chief Operating Officer Shannon Irwin said that after months of due diligence and discussions, Synergy moved one custody relationship from Pershing to Goldman Sachs earlier this year while keeping its relationship with Charles Schwab.
Irwin said the move was not prompted by dissatisfaction with any particular Pershing service. Goldman’s private wealth management and banking businesses offered services Synergy wanted to add for ultra-high-net-worth clients. Fees were part of the review, but not the only deciding factor. Irwin also said Goldman’s willingness to spend time understanding Synergy’s business mattered to the firm.
Technology, pricing, service and flexibility in working with multiple institutions can all shape an adviser’s choice. SageSpring Wealth Partners, based in Franklin, Tennessee, ended its relationship with Raymond James Financial Services in late 2024. Its president, Jeffrey Dobyns, said he had good relationships with many people at Raymond James and valued how the firm treated its clients. Technology, more attractive fees and the flexibility to work with multiple institutions were among the considerations behind the change. The competition is therefore about more than pricing: custodians also have to fit advisers’ operating models and client needs.