Howe & Rusling Wealth Management, established almost 85 years ago, was an early adopter in the field of investment counseling. Today, they are the oldest company focused on retail wealth management clients, emphasizing fiduciary duty. With over 15,000 RIAs managing $144.6 trillion in assets, the industry has seen significant growth.

The debate over fiduciary obligations in the financial planning profession remains tense and evolving. The growth of the RIA model is not solely due to fiduciary obligations but also the shift towards providing helpful advice. The rise of personal computers in the ’90s enabled RIAs to manage a wider client base effectively.

Notable RIAs such as T. Rowe Price, JPMorgan Chase, and Edward Jones have maintained their RIA status since 1940. However, distinctions between financial planning and other services highlight the ongoing debate over fiduciary rules. The adherence to fiduciary standards is crucial for the long-term well-being of the industry.

The signing of the Investment Company Act of 1940 and the Investment Advisers Act marked a significant milestone in regulating the financial industry. The SEC’s power to enforce the fiduciary duty was validated by a Supreme Court case. The combination of fiduciary duty and scalable technology has led to the success of RIAs in wealth management.

Read more at Yahoo Finance: The oldest RIAs are 85. How did they become a $144T industry?