RIAs, referrals and Schwab and Fidelity; the top 20 fee-only RIAs by AUM

RIA LEADERS 2023: Referral programs — in which companies give leads on potential customers — bestow new business to the firms that are able to convert the leads. Referrers can include existing clients as well as lead-generation businesses, accountants, lawyers, matchmaking services and, crucially for advisors, the direct retail wealth arms of Schwab and Fidelity Investments. Referrers often collect a fee, and their leads represent an important source of incoming clients.?

Schwab and Fidelity face more competition in an industry increasingly fragmented between large and small RIAs and obsessed with organic growth outside of M&A deals and recruiting. The firms' rivals are raising questions about the conflicts of interest that come with the rarefied access to the programs. Others wonder whether the Schwab and Fidelity brokerage and wealth units will build out their own businesses to the point that they'll no longer need to send clients to outside RIAs.

Read: Schwab and Fidelity referrals give certain RIAs business, deal others out

WHO'S NO. 1? The assets managed by the 20 largest fee-only registered investment advisory firms in the financial planning profession took a hit in last year's stock and bond slump.

That accounts for the main differences between the 2023 rankings, which data partner COMPLY scraped together from Form ADV filings with the Securities and Exchange Commission, and the 2022 version of Financial Planning's RIA Leaders rankings. See which 20 firms made FP’s 2023 list.?

Read: These are the 20 largest fee-only RIAs, ranked by AUM

INDUSTRY INSIGHT:? What will 2024 be like for the wealth management industry? We don't have a crystal ball, but we have you, our readers — and we need your help. Every year Arizent, Financial Planning's parent company, surveys hundreds of financial advisors across the country. We ask these planners what they expect in every aspect of their work. The final product is a comprehensive forecast for 2024, offering valuable insights on which wealth managers can base their strategies for the coming year.

As a reward for your participation, you'll receive your choice of either a $10 Amazon gift card or a $10 donation to the World Central Kitchen, a nonprofit that provides services in Ukraine and other areas facing humanitarian crises.

Financial advisors: Take the survey here.?

Get the latest in wealth management and financial planning news here.