Independent Advisor Technology Forum Launched to Help Break-Away Advisors

A consortium of technology providers to the independent financial advisory industry has formed the Independent Advisor Technology Forum (IATF) to help newly independent financial advisors set up their businesses. News reports and industry data suggest that thousands of former financial advisors associated with Wall Street firms have left or are leaving their firms in the wake of this year's financial turmoil and are forming their own, independent financial advisory firms. They will be joining the ranks of over 18,000 established Registered Investment Advisors (RIAs) who serve higher net worth investors across the United States. One key aspect of going independent is the requirement for newly independent financial advisors to purchase the software, hardware and other technology components to complete their back office. According to a recent survey by Schwab Institutional, a leading custodian to independent RIAs, 51% of advisors who recently turned independent said that choosing technology for their new practice was one of their biggest challenges. To address this key need, IATF will facilitate interaction among independent advisors to exchange ideas on setting up their businesses. It will also feature various workshops and online webinars aimed to assist advisors in developing their own independent business models. "For many advisors, they've never had to build an investment practice from the ground up and this requirement can be an obstacle for going independent," said Timothy D. Welsh, CFP, president of Nexus Strategy, in a press release. Nexus Strategy is a consulting firm to the independent advisor industry.