Fidelity Reaps $7 Billion in Assets from Breakaway Brokers

Fifty-five brokers with a combined $7 billion in assets under management that have left wirehouses to form their own independent registered investment advisory firm have selected Fidelity as their custodian in the first six months of this year. This is double the new assets Fidelity attracted from breakaway clients in 2007.

In making the selection, the new clients cited Fidelity’s technological prowess, experience, particularly in working with breakaway clients, and its HybridOne platform for dually registered advisors.

“Making the decision to break away and establish an RIA firm offers many rewards, but it also has many challenges, such as understanding the financial, legal and professional obligations,” said Steve Adams, of Adams Asset Advisors.

Fidelity said it expects the trend for independent RIAs to set up shop will continue.