The US registered investment adviser (RIA) industry is facing pressure from two directions: experienced advisers are approaching retirement while the supply of new talent remains limited. Atlanta-based OpenArc Corporate Advisory and Franklin, Tennessee-based SageSpring Wealth Partners are responding with structured programmes that give new advisers time to learn alongside established teams before they are expected to build a client book on their own.
SageSpring runs a two-year mentoring programme, while OpenArc uses a three-year training track. Both firms treat adviser development as a long-term talent pipeline rather than a short-term sales hiring exercise. The ability to prepare people who can eventually take over client relationships will also determine whether assets remain with a firm when senior advisers retire.
One widely cited industry estimate suggests that retirements and rising consumer demand for financial advice could leave the profession short of 100,000 advisers by 2034.
SageSpring gives new advisers two years with senior teams
Jeffrey Dobyns, president of SageSpring, said the firm has about 50 adviser teams and 200 employees, with approximately $10 billion in assets under management. During their first two years, new hires work closely with a senior adviser. They take part in group training with their mentors while also learning through day-to-day client work.
Dobyns said young people who are willing to learn, commit to the work and accept guidance can add value to an established team while developing the skills required to serve clients. As they gain experience, those advisers may eventually help train the next group of recruits, creating a continuing development cycle.
He rejects the idea that training should be reduced to making a set number of calls each day or searching for clients among friends and family. Watching experienced advisers manage relationships and navigate the business can give new hires a faster understanding of how the work is done. Measuring a newcomer only by activity levels can also overlook the value of the learning process.
OpenArc spreads development across three years
At OpenArc, partner and senior wealth adviser Clifford “Trip” Farren oversees training for new advisers. Recruits join operating units made up of advisers and support staff, which the firm calls “pods”. Within those teams, they gradually become familiar with clients and the firm’s business processes.
The programme is divided into three stages. The first year focuses on industry fundamentals, the second on building a deeper understanding of the business, and the third on learning the client base served by the adviser’s team. Group training is held weekly during the first two years.
New advisers also take part in efforts to win new client relationships, but senior members of the team provide support. They are not expected to carry the full burden of business development alone from the outset.
OpenArc pays recruits during the training period, Farren said. After three years, that compensation arrangement phases out. The firm’s goal is for advisers to be at least close to break-even, or slightly below that level, by then, while beginning to build their own business and contributing to the growth of the team they joined.
Farren attributes the approach to a culture of mutual support that developed over many years. He said he received substantial help early in his own career and wants to pass that experience on to newer advisers.
Building a client book alone is a high hurdle
David Wagner, chief executive of Newport Beach, California-based Tidecrest Wealth Management, said young advisers often struggle to sustain a business when they are expected to develop it independently from the beginning.
New advisers must earn client trust and compete for the opportunity to manage household savings. At the same time, they may face fee levels similar to those charged by more experienced adviser teams, despite having less experience and fewer internal resources to draw on.
Wagner said it is unrealistic to expect inexperienced advisers to shoulder business development on their own. A team-based structure can expose them to roles beyond advising and give them more support as they begin assembling a client base.
He also noted that the University of California, Santa Barbara offers limited coursework in financial planning, while Tidecrest receives a large number of internship applications. In response, he launched quarterly information sessions for people interested in entering the industry. The first session drew about 15 participants.
The sessions are intended to provide information Wagner wishes he had received when he was younger. He also encourages students to demonstrate their interest through internships, shadowing advisers, speaking with industry professionals or joining investment clubs.
Smaller RIAs can create entry points
OpenArc and SageSpring have become fully independent in recent years with assistance from Dynasty Financial Partners, but both firms have invested in internal training for decades. Not every RIA has the resources to build a comprehensive development system. Smaller firms can still lower the barrier to entry through internships, opportunities to shadow senior advisers, regular training sessions and scheduled time for experienced employees to answer questions.
Dobyns said many young people are interested in the investment industry, but having them make cold calls or approach prospective clients on their own is not an ideal starting point. As adviser retirements coincide with growing demand for financial advice, firms’ ability to develop new advisers who can take responsibility for client service will affect both succession planning and the continuity of client relationships.