OpenArc and SageSpring build in-house advisor training programs

Financial Planning reported on Oct. 13 that Atlanta-based OpenArc runs a three-year training class and Franklin, Tennessee-based SageSpring runs a two-year mentorship program. Both firms use the programs to keep new entrants on teams rather than sending them out alone.

The programs respond to a succession problem. The report cites a widely cited estimate from last year that retirements and consumer demand will leave the industry 100,000 advisors below the headcount needed by 2034. It says the two firms have joined a small group of RIAs that built internal development pipelines and career paths rather than relying on outside training.

OpenArc's class is run by Clifford "Trip" Farren, a partner and senior wealth management advisor at the firm. He told Financial Planning the effort reflects a culture of giving back that board members started long ago. "I received a ton of support that helped me when I launched my career, so I feel a responsibility to pay that forward," he said.

SageSpring has around 50 advisory teams, 200 employees and $10 billion in client assets, according to president Jeffrey Dobyns. He described the model most firms use instead: leaving new advisors to work alone. "It's just crazy that most firms have them go by themselves and have them cold call or knock on doors, etc.," he said. "It's good for everyone if you have someone who's really sharp and young and eager to learn."

Smaller firms can implement their own versions of the same tactics, the report says: letting newer entrants shadow a successful advisor and work on the same team, convening several trainees for regular instructional courses, and opening senior team members' doors for college-style office hours. RIAs without the resources for a full system can still fund internships, join external collaborations or spend time promoting the field to young people and career changers, the report says.

Both firms became fully independent in recent years with assistance from RIA services firm Dynasty Financial Partners. Both have been investing in internal training for decades, the report says.