Moreover, firms’ CEOs rank regulatory issues above market declines, registered investment advisor (RIA) “pure play” business models, clients and advisors who don’t fully recognise interest rate risk and potential for a bond bubble pop, and emerging competitive threats, according to the FSI 2015 Financial Performance Benchmarking Survey issued by the Financial Services Institute (FSI) and consulting firm Strategy & Resources LLC, accountingweb.com reports.
Yet, those “distractions” served as catalysts for innovation at the survey respondents’ firms, according to a news release, the source cites. FSI President and CEO Dale Brown, has claimed that member firms are supporting hybrid business models as primary option when it comes to advisor affiliation models. There is also support for advisor-owned RIAs and the creation of product or platforms delivered through the member firm. Additionally, member firms report a material decline in client complaints, as well as an expansion of practice management in support of advisor succession needs.
The survey also revealed CEOs’ optimism, with most believing the increase in firm valuations, as well as merger and acquisition activity, to continue – though at a slower rate. CEOs were asked to rank the impact of client-facing investing tools that advisors use to show clients’ progress toward their personal objectives rather than, or in addition to, traditional performance gauges.
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