The challenge for the smaller RIAs will be to articulate the value they can add to the client, he added.
Another trend that is emerging is that the number of serial aggregators is growing. “They have the money,” and they are looking for new strategies to acquire, he said. “Financial planning is an attractive industry,” he said.
The M&A activity benefits clients who gain access to more strategies, while they can maintain their relationships with their advisors, he noted. “Investors are still drawn to relationships in this busines,” he said.