Wealth Management News: February 2025
Valentine’s Day is behind us, Spring is around the corner, and the wealth management and technology industry’s major stories for the first quarter of the year are still taking shape. Here’s your roundup of the must-know news from February 2025.
Morningstar Decides to Get Out of the Office
What happened:
While other companies are issuing Return to Office orders, Morningstar announced it’s getting out of the Office—and by Office, we mean its Morningstar Office technology platform, not its physical building. As part of the announcement, Morningstar also announced it has entered into a strategic partnership with SS&C Black Diamond to help its advisors find an alternative solution while still sharing in some of the revenue.
Why it matters:
The shuttering of Microsoft Office creates a large shift in the portfolio management technology space, which advisors use to power a sizable part of their daily operations. While converting from one system to another is never easy, this partnership uniquely positions firms to find an easy landing spot. As advisors change systems, it’s also the perfect time to reevaluate their entire tech stack and look for other areas to improve—such as with their portfolio analysis tools.
AI Startup Zeplyn Appoints Kabir Sethi to Board
What happened:
Zeplyn, an AI-driven note-taking platform for financial advisors, has announced the addition of Kabir Sethi, former LPL Financial executive, to its board of directors. Sethi brings extensive experience in digital strategy and wealth management to the startup, which is competing with numerous other AI note-takers for the attention of advisors.
Why it matters:
Sethi’s appointment signals Zeplyn’s commitment to driving AI-fueled innovation for advisors by leveraging top industry talent. In a space where it can be difficult for a software solution to stand out, Sethi’s track record is expected to guide the company in making inroads with relationships and knowledge built at one of the industry’s giants.
Savvy Wealth and Nitrogen Recruit Industry Veterans
What happened:
Fintech firms Savvy Wealth and Nitrogen have each appointed seasoned professionals to spearhead their growth strategies. David Weiner joins Savvy as its new Chief Growth Officer, who has had stints among numerous SaaS companies, and Nitrogen has added wealth management veteran Rachel Cameron as its new Managing Director of Partnerships after she held a similar role at DPL Financial Partners.
Why it matters:
As good as software can be, it’s made even better when the right people are behind it fueling service and innovation. Bringing in experienced veterans reflects a strategic move on both companies’ parts to leverage their experience and networks, ultimately positioning each for a period of accelerated growth. What can advisors expect after news like this? A renewed commitment to innovation and support for growth-minded advisors is a sure bet.
New RIA Platform Uptick Expands Network with Second Firm
What happened:
Uptick, a recently launched (RIA) platform founded by former Edward Jones advisors and geared toward assisting captive brokers with the path to independence, has added a second firm to its new network.
Why it matters:
It’s becoming common to see RIA aggregator platforms enter the industry with the goal of creating a landing spot for independent-minded advisors, without the risks of entirely going it on their own. Uptick’s offer is unique among them in how it structures revenue sharing with its advisors. As the space becomes more crowded with solutions for advisors looking for a new home, the overall trend toward independence may also continue to grow in parallel.
Robinhood Announces Closure of SEC Crypto Investigation
What happened:
Robinhood announced that the Securities and Exchange Commission has concluded its investigation into the company’s cryptocurrency operations without pursuing any enforcement action. This development follows a period of regulatory scrutiny over the platform’s handling of crypto assets.
Why it matters:
Is it a sigh of relief or resignation that the SEC won’t pursue any actions against Robinhood? While it’s often a media darling, it’s also a lightning rod for criticism within the RIA industry. The closure of the SEC investigation provides Robinhood with a clearer regulatory standing, potentially restoring investor and user confidence. This outcome may also be important for its reputation among advisors following its acquisition of RIA custodian TradePMR.
Charles Schwab Appoints New Head of Digital Assets
What happened:
Charles Schwab has promoted from within to name Joseph Vietri as the new Head of Digital Assets. Despite making it known that it wants to get into cryptocurrencies, Schwab has taken a cautious approach to digital asset strategy. This new position marks a significant advancement in its planning.
Why it matters:
Vietri’s appointment indicates Schwab’s increasing interest in figuring out how to integrate digital assets into its offerings. With a background in knowing RIAs, Vietri likely will have a role in making the crypto market—a black sheep among many advisors—more accessible and palatable to this audience. His leadership will be crucial in navigating the complexities of digital asset integration within a traditionally conservative financial institution.
LPL Financial Introduces Alternatives Platform
What happened:
LPL Financial has launched AltsConnect, a new platform designed to provide advisors with streamlined access to alternative investment products. This initiative promises shorter response times, real-time order monitoring, and integrated compliance review.
Why it matters:
AltsConnect offers advisors a centralized digital platform to explore and manage alternative investments, potentially making it easier and more acceptable for advisors to discover and recommend alternative strategies to clients. This development reflects the growing interest in alternative assets among investors and the need for efficient solutions to access them. With LPL making a dedicated effort to change access for advisors, it seems likely others will follow suit.
Advisor Shortage Could Reach 100,000 by 2034
What happened:
A new McKinsey report projects that the financial advisory industry could face a shortage of 100,000 advisors by 2034 due to a combination of factors like retirements, varying career preferences, and the evolving demands of wealth management clients. The report highlights the need for firms to attract and retain new talent while adopting technology-driven solutions to bridge the gap.
Why it matters:
The advisory industry is at a crossroads. With an aging advisor workforce and fewer young professionals entering the field, it’s far past time for firms to proactively invest in training, mentorship, and software tools to scale client service. However, this shortage also shoves AI and its promises about efficiency gains directly into the spotlight. With more tasks able to run by automation and software, will the lack of advisors matter as much in 2034 as it would have in 1994? Whatever the end result, firm owners have the advantage of reports like this to guide their near-term hiring and retention strategies so they’re prepared for the long-term effects.