<p>Altruist,
the custodian for independent registered investment advisors (RIAs), has launched
a <a href=”https://www.financemagnates.com/tag/clearing/” target=”_blank” rel=”follow”>self-clearing brokerage</a> dubbed Altruist Clearing, offering a fully-digital
alternative to the industry dominated by legacy financial institutions.</p><p>Altruist Presents Altruist
Clearing</p><p>According
to the announcement shared with Finance Magnates, RIAs have experienced
an annual growth rate of 12% since 2016, making them the fastest-growing
category in the US wealth management market. Despite the fast growth,
traditional financial institutions have historically underserved RIAs, even
though they hold 80% of the $7 trillion in advisory assets.</p><p>Altruist
wants to change that by offering its newest self-clearing services, combining
them with the current software suite, lower fees and expanded customer support.
This will give RIAs access to a custodian that manages client assets in a
faster, safer and cheaper way. Launching Altruist Clearing makes the firm the
industry’s first all-in-one custodian.</p><p>”From
day one we’ve always planned to become self-clearing, as it’s the best way to
provide maximum value to advisors. With this step, we’re able to build
features tailor-made for RIAs and their clients, which accelerates our mission
of making financial advice better, more affordable and accessible to everyone,”
Jason Wenk, the CEO at Altruist, commented.</p><p>Altruist’s
decision to self-clear provides them with a technological edge over other technology
platforms and custodians that rely on third-party <a href=”https://www.financemagnates.com/terms/c/clearing/” class=”terms__main-term” id=”6c3ba510-6f30-4e6e-9b3a-f43b62dcb8d3″ target=”_blank”>clearing</a> houses. By taking complete
control of its product roadmap and support model, Altruist intends to create
fresh and inventive <a href=”https://www.financemagnates.com/tag/asset-management/” target=”_blank” rel=”follow”>wealth management</a> features that are unavailable through
custodians who concentrate on retail service models.</p><p>”Now,
as a full-service custodian, we are excited to be able to provide our platform
to advisors of all sizes who have been underserved by existing options,” Mazi
Bahadori, the Chief <a href=”https://www.financemagnates.com/terms/c/compliance/” class=”terms__secondary-term” id=”569f58ee-534c-44f0-a7cd-f55b0f9a2b2a” target=”_blank”>Compliance</a> Officer and EVP of Operation at Altruist, added.</p><p>The
Altruist platform offers RIAs a range of capabilities that can help them save
time, reduce costs, and generate additional revenue. These include digital
account opening, an intuitive client-facing mobile app, one-click
commission-free trading, automated rebalancing, flexible fee billing, live chat
support with experts, fractional shares, and hundreds of model portfolios. </p><p>What Is RIA?</p><p>Registered
investment advisors (RIAs) provide advice on securities
investments and manage investment portfolios for clients. They are required to
register with either the state securities administrators or the US Securities
and Exchange Commission (<a href=”https://www.financemagnates.com/tag/sec/” target=”_blank” rel=”follow”>SEC</a>). As fiduciaries, RIAs must always act in their clients’ best interests when providing investment advice.
This duty is fundamental and non-negotiable.</p><p>Despite the
challenges posed by a <a href=”https://www.financemagnates.com/forex/2022-equity-market-rout-pushed-cfds-investors-out-data-shows/” target=”_blank” rel=”follow”>difficult stock market in 2022</a>, the fee-only registered
investment adviser industry experienced a surge, with total client assets
exceeding $3 trillion for the first time in history, according to InvestmentNews’.
The review includes firms with $100 million or more in assets and categorizes
them into four US regions: the Northeast, West, Midwest, and South. Across all
four areas, 3,006 RIA firms reported $3.015.5 trillion in assets in 2022,
compared to $2.493.5 trillion in 2021, representing a year-over-year increase
of $522 billion or 20.9%.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
