SEI generated $7.1 billion in cash receipts and took on 488 new registered investment advisors in 2012, representing over 40 per cent growth for the year.

The firm told Family Wealth Report that it defines a new advisor as one who brings in a minimum of $500,000 in assets during the year.

Wayne Withrow, executive vice president and SEI advisor network business unit leader, acknowledged that the advisor market is “more competitive than ever before”, but expects his firm to see further growth this year due to new exchange-traded fund strategies, as well as an expanded separately-managed account offering and the planned roll out of a new wealth platform.

RIA industry taking off

SEI pointed to a June 2012 Gallup poll, in which under a quarter of respondents said they had faith in big banks and large financial institutions, representing an all-time low. “This change in perception has had a significant effect on financial advisors, causing many to shift from large wirehouses to an independent model,” the firm said.

Similarly, recent research from Cerulli Associates found that wirehouse broker-dealers controlled an estimated 38.8 per cent of total advisor-contributed assets in 2012, while RIAs and dually registered channels posted the strongest asset growth, bolstered by advisor movement. Cerulli forecasts the marketshare of RIAs to grow by 2.2 percentage points in 2013.

“Advisors have piled in to the RIA channel either by starting their own practice or joining an existing firm, drawn by the expectation of higher payouts, practice autonomy, and a reduction in conflicts of interest with their clients,” the firm said.

SEI provides financial advisors with turnkey wealth management services through outsourced investment strategies, administration and technology platforms, and practice management programs. The firm’s network consists of over 4,900 advisors, who collectively manage $33.7 billion in assets under management, as of December 31, 2012.