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Practice Management > Building Your Business

Fidelity Rolls Out Indie Hub to Draw Breakaway Advisors

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Fidelity announced Tuesday that is has created a new educational platform called the Independence Hub to help advisors navigate the decision-making process and learn about the benefits and challenges of breaking away.

The firm describes the new hub as “a central location for insights, tools and practical steps to support advisors on their path to independence, including actionable guides for each phase of their journey — consideration, transition and growth.”

Why it matters: As ThinkAdvisor has previously reported, there is a notable groundswell of financial advisors growing weary of operating their advisory practices within the traditional wirehouse and banking channels. When an advisor is at a wirehouse, they are generally captive in terms of the products they can use and the approach they can take in serving clients.

Advisors may prefer independence and the benefits associated, Fidelity suggests, but they often lack key knowledge and may fear the unknown.

In fact, a survey published by Fidelity to mark the hub’s launch shows only about half of advisors consider themselves knowledgeable about firm types (54%) and independence models (49%), while only 25% know the various intermediaries — e.g., third-party recruiters, consultants, clearing or custody providers — that can help with finding a firm.

What to know: According to Fidelity’s announcement, the firm drew from its experience in business development, practice management, technology and investment consulting to develop a suite of resources to help guide advisors through the various stages of independence and to better inform their decisions.

One key feature shows advisors “how to build a tech stack one step at a time,” offering a “simplified approach for newly independent advisors to get the tech they need, when they need it, and evolve as they grow.”

In addition to the educational resources, the hub also includes an RIA valuation tool that helps advisors of all sizes understand their potential economics as they go independent, including increases in earnings or revenue compared to their current model.

What they’re saying: “Arming advisors with the resources needed to help expand their breadth of knowledge has always been a priority,” says Rohit Mahna, head of client growth at Fidelity Institutional Wealth Management Services.

“Fidelity is committed to leveraging its deep expertise to not only help educate advisors and provide the tools needed to facilitate better outcomes, but be a true collaborator as advisors look to build their businesses,” Mahna explained.

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