Guides
How the business works
Plain-English explainers on custody, breakaways, recruiting deals and the rules behind advisor moves. Sourced, and updated as the news changes them.
Updated October 7, 2026
Fidelity's $100 million RIA custody minimum, explained
On Oct. 1, 2026, Fidelity told registered investment advisers that they must hold at least $100 million in client assets at Fidelity by June 30, 2027, or move custody elsewhere. The threshold counts only assets custodied at Fidelity, not a firm's total assets under management. Fidelity already applied the same minimum to new RIAs and is extending it to existing firms for consistency.
Updated October 7, 2026
How RIA custodians work, and how the major ones compare
A custodian is the bank or broker-dealer that actually holds an RIA's client assets, processes trades and sends account statements directly to clients, as the SEC Custody Rule requires. Among 8,572 wealth-focused SEC-registered RIAs that report custodians in Form ADV, Schwab is named by 5,774 (about 67%) and Fidelity by 1,999 (about 23%), followed by BNY Pershing, LPL Financial, Raymond James, Interactive Brokers and Altruist.
Updated October 7, 2026
What is a breakaway advisor, and how does a breakaway move work?
A breakaway advisor is a financial advisor or team that leaves a wirehouse, regional or bank-owned brokerage, where they are employees, for an independent model such as an RIA or an independent broker-dealer. The move typically involves a registration change filed with FINRA, a resignation handled under the Protocol for Broker Recruiting or the advisor's employment agreement, and the transfer of each client account that the client agrees to move.
Updated October 7, 2026
Forgivable loans in advisor recruiting, explained
A forgivable loan is the upfront part of most advisor recruiting packages: the firm lends the advisor a lump sum under a promissory note and forgives a slice each year the advisor stays, typically over 7 to 12 years as reported. If the advisor leaves early, the unforgiven balance generally comes due, and firms pursue unpaid notes through FINRA arbitration. Each forgiven slice is generally taxed as ordinary wage income in the year it is forgiven.