RIA Leaders 2022: These are the 20 largest fee-only RIAs

The biggest fee-only advisory firms in the country manage more than a combined $332 billion in assets, as the industry's continuing movement toward fiduciary advice fuels their growth.

For Financial Planning's latest annual RIA Leaders study of registered investment advisors that provide fee-only financial planning services, compliance firm RIA in a Box scraped SEC Form ADV filings to compile a list of the largest companies based on their assets under management. FP's six-part criteria led to some familiar names such as Chevy Chase Trust, Ballentine Partners, Savant Wealth Management, Wealthspire Advisors, EP Wealth Advisors, Cresset Asset Management and Moneta Group Investment Advisors. But the formula also identified several family offices that operate massive businesses without as much name recognition.

Huge growth remains constant in the channel, with record amounts of assets flowing into RIAs and new highs in M&A volume helping the biggest players turn into giants. Financial advisors and their clients are driving that expansion by choosing the level of care that requires RIAs to put customers' needs first at all times over that of brokerages, which only need to act in a client's best interest, according to Andrew Besheer, the director of consulting firm Aite-Novarica Group's wealth management practice.

"It's that whole shift in the industry dynamic from a transactional, commission-based brokerage relationship to a fee-based advice, lifetime kind of relationship," Besheer said in an interview. "It almost requires that you become an RIA. That's a big foundational change."

For Chicago-based Cresset, its position near the top of the RIA Leaders rankings has come quickly for a firm launched only five years ago. Ex-private bank teams leaving J.P. Morgan Chase and other incumbents have broken away to join the independent RIA, which is run by founders who left many of the same firms, Cresset founding partner Doug Regan said in an email.

"The early success they earned created a beacon for other private bankers to take the risk and join the RIA industry," he said. "Working in a fiduciary capacity for our clients — one free from the inherent conflicts of interest resident in private banks — is a lure to talented private bank advisors, as they see this as a new way forward as they work with clients and talk to prospects." 

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Despite the growth, RIAs face a couple of potential headwinds that might make next year's numbers look smaller, starting with the stock market losses so far in 2022 and inflationary concerns about a recession in the larger economy. In addition, incumbents with their own RIA platforms for advisory services are learning to be more flexible and encouraging practices to deliver more planning with the same firm rather than breaking away, Marina Shtyrkov, associate director of wealth management with consulting firm Cerulli Associates, said in an email.

"For the past decade, the RIA channels have enjoyed industry-leading growth rates, but their consistent position as marketshare winners has triggered emulation from firms of all types," Shtyrkov said, noting how traditional brokerage firms are changing. "Their entrance into this space impinges on what has historically been viewed as unique to the RIA channels — an independent, advice-based framework centered on financial planning."

A Republican takeover of the White House could also alter the dynamics pushing assets into breakaway RIAs, according to Besheer. Currently, the regulatory tide is moving assets into RIAs as brokerage firms seek to stay ahead of enforcement actions that they say are nudging them toward advisory services as well.

"Should there be a significant political shift in this country in two years, in four years, in six years, whatever, you could see some of the regulatory drivers that have created this landscape change," Besheer said.

For the rankings of the largest fee-only RIAs that provide financial planning services to clients, scroll down the slideshow. To read the cover story, "Financial planning clients are undefined, undercounted and underserved," click here. To view a longer list of the top 150 fee-only RIAs based on FP's criteria, follow this link. For last year's RIA Leaders feature, click here.

Notes: FP's data partner for the RIA Leaders feature, RIA in a Box, compiled the below rankings from firms' required SEC Form ADV filings in July 2022 using a six-part criteria.

1. Firms must have zero registered representatives of a broker-dealer
2. At least 50% of the firm's clients must be individuals or high net worth individuals
3. Firms must not list commissions as a compensation arrangement
4. Firms must have more than zero financial planning clients
5. Firms must not list commission-taking businesses in "other business activities"
6. Firms cannot be affiliated under common ownership with commission-taking businesses