The new offering plays into a need for advisors to be able to build ownership and develop succession possibilities.

An RIA “co-operative platform” – Avise Financial – has been launched in the US whose co-founders say taps into an advisory space that is being upended by succession, M&A and technology.

The co-founders are Katrina Soelter and Leighann Miko.

The new offering is available to certified financial advisors. A virtual platform, it streamlines business administration so that advisors can support clients more effectively and diversify their impact, all while retaining full ownership of their firm, its creators say.

The platform does not require a minimum figure for assets under management; it charges a minimum annual membership fee of $30,000. Member advisors have the option of either using the Avise branding or developing their own brand identity, website, social media, etc. Advisors pay a fee based on topline revenue: The first $500,000, advisors pay 15 per cent; the next $500,000, advisors pay 10 per cent and on anything above that, they pay 5 per cent, a spokesperson for the firm told Family Wealth Report.

The business said its fee structure beats the opposition. "Other similar platforms are currently charging 30 to 40 per cent, so we’re really proud to offer a solution for advisors that is well below market value while simultaneously improving diversity and equity in the industry," the spokesperson said.

The financial advisory sector needs to be shaken up, Soelter said in a statement about the launch.

“Recognizing the delicate nature of the succession process and having personally experienced the burnout that comes with running our own RIA business, we were keenly aware of the immense potential that lay before us," she said.

Retiring advisors, and those planning to retire or step back, puts a large chunk of RIAs in play. Cerulli’s US RIA Marketplace 2023 report said that 37.3 per cent of advisors at RIAs anticipate retiring or taking a major step back from their businesses within the next 10 years, which would result in 35.2 per cent of channel assets being in transition. This is happening against a background of wealth transition as Baby Boomers pass away.

"Today, too many RIAs pay high fees to vendors and partners to operate their businesses, impacting their bottom line and prohibiting their ability to work with clients that fill their soul,” Miko said. “We’re focused on tapping into that potential by incorporating a residency program in our first year of operation to help improve both diversity and capacity in the industry.”

Avise platform users become member-owners who are afforded one vote each. This enables Avise to harness the ideas of all advisors, regardless of their AuM or size. The offering’s creators say the community of like-minded advisors on the platform creates partnership and succession opportunities.

FWR asked what sort of businesses the Avise organization wants to attract.

"Right now, we are focused on onboarding our first advisor to the platform and working to support him during this transition. We’ll be learning a lot this first year, and we’ll take those key learnings to streamline our process and support. Avise was built for advisors looking to own their business, not the other way around. We are looking to partner with advisors who are burned out from running their own business, breaking away from broker-dealers or wirehouses, or leaving larger RIAs," the firm's spokesperson said. 

"One of our main priorities in this first year is to develop and kick off our residency program. From our experience, the first two years in our industry are the hardest, so we’re looking to partner with other organizations to bring interns on as residents in our firm. Advisors on the Avise platform will be able to purchase hours at cost for support services from these residents. In their first year in the program, residents perform a lot of the operations tasks for advisors, like assisting with client onboarding, billing, etc," the spokesperson added.