2025 will likely be a banner year for new RIAs, although the government shutdown has hampered that.

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By Michael Magnan, Founder of AdvizorPro, a leading wealth management and financial advisor intelligence platform for smarter prospecting

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This year could have been one for the record books in terms of new registered investment advisory (RIA) firms coming to market. Even with the government shutdown, which stalled new Securities and Exchange Commission (SEC) registrations for the month of October apart from two, 2025 is apt to surpass 2024 for new RIA firms. 

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Before the government shutdown, 1,267 new RIAs were approved by the SEC; last year, that number was 1,369. On average per month, 141 new firms are approved, so before the shutdown occurred the industry was on track to have 1,689 new firms in 2025. 

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It feels like the word that best categorizes the financial advice industry lately is more – more mergers and acquisitions and firms adding more headcount organically. That’s among the reasons that we’re seeing more new firms because of these factors:

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• More advisors yearning for independence and running their business the way they’d like to
• Increased consolidation among larger RIAs
• Succession plans that might lead to teams breaking up or new firms launching

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Given that these forces aren’t likely to abate in the coming years, we should expect that 2026 is another record year for new RIAs. 

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What Does That Mean?

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Additional new RIAs means more choice for investors. Given that, advisors will have to truly stand out to get prospects’ attention. How can they do that? 

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Advisors with more specific niches and clearly defined value propositions will have the right prospects attracted like magnets to them. Also, advisors who penetrate through the content clutter will reach their targets. As industry marketing guru Samantha Russell noted, only one percent of LinkedIn users are creating content. Become part of that one percent and advisors can leverage a powerful audience. 

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Another route to consider is offering services that will truly capture clients’ attention. For a few years, studies have shown that more investors want access to tax and estate planning services. Learn what prospects want and find a way to provide it.

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Read more about how the government shutdown is affecting the RIA landscape HERE