Built on Independence: The SJS Commitment to Employee-Owned Financial Advising
By Founder & CEO Scott J. Savage
With America celebrating 250 years of independence, it feels like an appropriate time to reflect on the value of independence in our own industry and why we believe it still matters today.
When I started SJS in 1995, my idea was simple – I wanted to sit on the same side of the table as our clients and build a firm free from conflicts of interest. I only wanted to give financial advice that was in my clients’ best interests. The fancy legal term for this is being a “Fiduciary.”
Beginning early in the 1980s and 90s, advisors like me were starting independent registered investment advisory firms or RIAs, free from many of the conflicts inherent in the broker-dealer world. This trend has continued, and more advisors are joining RIAs over traditional broker-dealers.[1]
Consolidation in the Financial Advisory Industry
At the same time, the industry is undergoing another major shift: consolidation and private equity investment. Over the past five years, RIAs with nearly $6,000,000,000,000 (yes, $6 trillion in assets) have partnered with private equity (PE)-backed investors, signaling a huge change in our industry.[2] If you have experienced your physician, vet, HVAC company, or dental practice being acquired by a private equity firm, you’ll likely have noticed changes in your experience, and not always for the better.
The PE firm makes an investment with the hope of selling for a big profit in roughly five to seven years. Raising prices, cutting expenses, centralizing services, and putting their profit before customers and employees are often part of the game plan. Additionally, adding debt to these companies is a tactic commonly used by PE firms to increase returns on their investment. PE-owned firms are not inherently bad, but it is a different way of doing business.
Furthermore, some private equity firms are buying RIAs and then starting broker-dealers, so they can legally receive commissions and fees from investment partners.
Can you see where this is going? Potential conflicts can re-enter the picture.
Why Independence Matters
As our country celebrates 250 years of independence, we are reminded that independence still matters in financial advice. A few years ago, I went on record that SJS is committed to remaining 100% employee-owned, and that commitment stands strong today.
At SJS, we believe the structure of 100% employee-owned RIAs is the most aligned with being a true fiduciary financial advisor for our clients. It allows us to take care of our great clients with our great people without having to answer to outside investors.
SJS’s Commitment to Remaining 100% Employee Owned
If you’ve gotten this far in the article, one thing becomes clear rather quickly – not all advisory firms operate under the same structure. While many RIAs are selling to investors, SJS remains committed to operating as a 100% employee-owned RIA, and we are proud to serve our clients with our fiduciary standard every single day.
As always, we encourage you to ask questions, stay informed, and understand how your advisory firm is structured and compensated. SJS remains committed to putting you, our clients, first.
Important Disclosure Information:
1 Cerulli: Independent RIAs to Grow 4% Through 2028. Alex Ortolani, 13-Feb-2025, wealthmanagement.com
2 Private Equity Ownership in the RIA Space – 2025 Trends. Cole Cummings, 4-Sep-2025, advizorpro.com
There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.
Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice.
Certain advisors of SJS may recommend the purchase of insurance-related products. Certain advisors of SJS are licensed insurance agents with various insurance companies and may receive additional compensation for such transactions.
Statements contained in this report that are not statements of historical fact are intended to be and are forward looking statements. Forward looking statements include expressed expectations of future events and the assumptions on which the expressed expectations are based. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.