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Highlights of 2014: From Online Alliances to Mega Deals

From the breakthrough performance of 'robo advisors' to Schorsch's big grab, the advisory industry has seen major changes in 2014. Here's a look at the most important events and trends pushing the industry forward this year.
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Rise of the Robos

Digital advisory firms gained undisputed traction with consumers in 2014 and have over $16 billion in assets, led by Wealthfront with $1.6 billion.

Impact: The gains -- and publicity -- garnered by 'robo-advisors' have forced traditional advisors to re-examine, and, increasingly, re-invent their own practices.
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Digital Alliances Emerge

Led by Fidelity's breakthrough deal with Betterment, custodians and traditional advisory firms began to forge alliances with online companies for access to digital platforms.

Impact: The moves ramp up the financial advisory industry's digital evolution and buttress business prospects of digital firms.
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Schwab's No Fee Robo Shocker

Charles Schwab announced a new online platform for consumers that won't have fees.

Impact: The new platform represents the ultimate commoditization of investment advice and a major competitive challenge to established 'robo advisors.'
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Boston Private Bags Banyan

Boston Private Bank & Trust acquired Banyan Partners -- the Florida RIA that Peter Raimondi grew to over $9 billion in assets in just six years -- for $60 million.

Impact: The year's biggest M&A deal demonstrated the appeal -- and value -- of a large and well-run RIA firm.
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Schorsch Snaps Up Cetera

REIT King Nicholas Schorsch's IBD buying spree culminates in the purchase of Cetera Financial Group for $1.5 billion.
Impact: The deal makes Schorsch's IBD empire the second largest in the industry by advisor count.
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CPAs in the Spotlight

Financial advisors are increasingly looking to recruit accountants and partner with CPA firms, as highlighted by the BKD/Wolf merger that pushed BKD's wealth management assets past $2 billion.

Impact: Talent-starved advisory firms are tapping a new pipeline and adding more value for clients.
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M&A Spreads the Wealth

More middle-tier RIA firms with AUM under $500 million have been attracting attention as M&A targets.

Impact: Good news for well-run smaller firms who can attract buyers; bad news for poorly-run smaller firms who can't.
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Military Marching Orders

A Financial Planning story spotlights U.S. military policy that does not allow financial advisors to provide financial planning, but the newly passed 2016 spending bill authorizes a Pentagon study of financial stress on service members and how the military can ensure that soldiers get more effective planning advice.

Impact: The study is a much needed potential remedy to combat the military suicide epidemic that kills about 1.3 soldiers a day.
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Demographics Drive Change

Time and tides wait for no man: One-third of advisors are over 55, and Americans over the age of 65 will double in 15 years.

Impact: Succession planning and recruiting Gen X and Millennial advisors and clients have become clear-cut industry priorities.
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