Advisory Firms: Growth by Design
Press Archive 2011
“This (asset-based fee) is the original compensation plan for advisers, and it's still the most common, bringing in 85% of advisory-firm revenue last year, according to a survey by FA Insight of Tacoma, Wash.”
Daisy Maxey, in “How to Pay Your Financial Adviser”
Wall Street Journal. December 12, 2011.
“The 84-page 'Study of Advisory Firms: People and Pay' notes that an inability or unwillingness to undertake exit planning is 'endemic across the industry'.”
Warren S.Hersch, in “Exit Planning Revisited”
LifeHealthPro. October 24, 2011.
“Success with an RIA comes in many forms -- personal and professional growth, doing what is best for clients, building value in a business, and economic reward represent just a few of the many opportunities an RIA presents.”
Dan Inveen, in “Pershing Offers New Guidance to Breakaway Advisors Launching an RIA”
Insurance News. October 10, 2011.
“According to a survey by FA Insight, 57% of all firms use a minimum dollar fee to protect profits and, of those firms, 80% of the clients are meeting or exceeding the minimum.”
Donna Mitchell, in “Knowing Their Worth”
Financial Planning. October 1, 2011.
“…some principals of registered investment advisor firms do not clearly define their firms’ organizational structures. It hinders their ability to give clear blueprints and roadmaps for success to their staff members.”
Dan Inveen, in “Before Laying Succession Plans, Create a Roadmap”
Financial Planning. September 29, 2011.
“At Financial Planning’s request, Pershing Advisor Solutions and FA Insight have a provided a list of the five-largest M&A deals involving RIAs by assets under management.” (Membership Required)
Donna Mitchell, in “Five Largest RIA Mergers of 2011?”
Financial Planning. September 27, 2011.
“They’re riding this wave of capitalizing on literally thousands of wirehouse advisors who have been defecting annually,”
Dan Inveen, in “CONCERT Wealth Management Nabbed 12 Wirehouse Teams in the Last 12 months and This Wirehouse-lite Is Just Getting Started”
RIABiz. September 27, 2011.
“It's certainly easier to cut prices with clients than to raise them.”
Dan Inveen, in “Slashing Fees to Clients in Tough Times Won't Help Your Business, Study Says”
RIABiz. September 20, 2011.
“Some services cannot be adequately compensated for under a pure asset-based-pricing structure unless you understand the cost.”
Eliza De Pardo, in “Five Ways to Boost Your Bottom Line”
InvestmentNews. September 18, 2011.
“Industry pundits had written off banks as active acquirers, we are seeing there are a fair number of banks that have capitalized sufficiently to entertain transactions.”
Dan Inveen, in “Advisory M&A Activity Drops in Q2, Even as Deals Get Bigger”
AdvisorOne. August 24, 2011.
“A study by FA Insight that was commissioned by Pershing concluded that advisors who consolidated assets on a brokerage platform were seeing productivity benefits that translated into more hours spent with clients.”
Jerry Gleeson, in “Not Enough Hours in your Day?”
Registered Rep. August 1, 2011.
“Growing via a niche or target market strategy allows a firm to focus resources and develop a compelling offer that attracts and retains target clients by speaking to their distinctive needs.”
Eliza De Pardo and Dan Inveen, in “Define & Conquer—Marketing Strategically to Achieve Growth”
AdvisorOne. July 28, 2011.
“Over the course of a year, Eliza De Pardo and Dan Inveen, principals at consulting and research firm FA Insight, have co-authored a series of Investment Advisor articles dissecting the results of their study 'Growth by Design'.”
Eliza De Pardo and Dan Inveen, in “Growth by Design: How Marketing and Operations Shape Firm Growth - Slideshow”
AdvisorOne. July 27, 2011.
“Too often investment professionals aren't getting a complete picture regarding the advantages of consolidating assets on a brokerage platform…”
Dan Inveen, in “Advisors Can Be More Profitable Through A Consolidated Brokerage Platform, Study Says”
Financial Advisor. July 13, 2011.
“If the markets are declining, it’s a tough conversation to have with clients. The real question is, how do you deliver value, and can you communicate that to the client?”
Eliza De Pardo, in “When Advisors Add Value, Pricing Power Follows”
Registered Rep. July 5, 2011.
“Buyers and sellers are less preoccupied with putting out fires. With markets more stabilized, advisors have more time to think strategically and look into mergers and acquisitions.”
Dan Inveen, in “Two Takes On RIA M&A Activity”
Financial Advisor. June 9, 2011.
“Firms that embraced a “growth by design” approach significantly outperformed their counterparts with annual growth rates that were 10% to 30% higher and operating profit margins that were 12% to 16% greater.”
C. Campeau, in “What Should Financial Advisors Spend On Practice Marketing?”
Financial Advisor.
May 16, 2011
“Smaller advisory firms are taking center stage as serial buyers pull back and RIAs step up.”
Dan Inveen, in “M&A Market Reaching A New Normal Based On RIA-Driven Deals, Say Competing Reports From Pershing, Schwab”
RIABiz.
May 4, 2011.
“Unless the owner's preferred resolution is shuttering a firm, some type of a sale, merger or acquisition is inevitable.”
Dan Inveen, in “Fewer, Smaller M&A Deals in 2010, But Revival Expected”
Financial-Planning.
April 28, 2011.
“According to a 2010 Pershing-FA Insight study, firms will need to add 46,000 investment professionals each year just to stay even.”
Jordy Evans, in “Ed Jones Exec on Recruiting Veteran FAs, New UMA: Weekend Interview”
AdvisorOne.
April 22, 2011.
“To identify the ideal client, Dan Inveen, principal and director of research at FA Insight, suggests focusing on a variety of characteristics.”
William Byrnes and Robert Bloink, in “Can Typecasting Your Clients Grow Your Advisory Business?”
AdvisorOne.
April 6, 2011.
“How a firm structures and manages its operations is essential for delivering on the firm’s value proposition in order to retain target clients and attract more like them.”
Dan Inveen and Eliza De Pardo, in “RIA Operations: Structure Capacity to Meet Demand”
AdvisorOne.
April 4, 2011.
“RIAs that are looking to build scale are increasingly interested in doing deals with each other.”
Dan Inveen, in “Are you looking to sell your firm? Here's what acquiring minds seek”
InvestmentNews.
April 3, 2011. (Registration Required)
“By eliminating a role for entry-level investment professionals and small producers in general in their organizations, broker-dealers create a heavy and unhealthy dependency on recruiting away a dwindling pool of experienced investment professionals from competitors in order to foster growth.”
Jerry Gleeson, in “The Myth of the Vanishing Advisor” referring to the FA Insight-prepared Pershing report, “Race for Top Talent II”
Registered Rep Advisorland.
April 1, 2011.
“More and more,” says De Pardo, “the question for advisors is to determine whether the interests of the client and the advisor 'are aligned' within the advisor’s chosen business model.”
Eliza De Pardo, in “Lessons Learned From Securities America”
AdvisorOne. March 28, 2011.
“For younger advisors or new entrants into the business who have a genuine passion for delivering advice, serving client needs and a desire for a long term professional advisory career, this will likely have little impact.”
Eliza De Pardo, in “Career Effects of Securities America's Legal Woes, Uncertain Regulation”
AdvisorOne. March 24, 2011.
“Understanding whom the firm serves and the value the firm delivers is key.”
Dan Inveen, in “Top Performers Have To Be Choosey”
Financial Advisor. March 14, 2011.
“Firms expanding nationally also need to make sure they are able to integrate and maintain consistency at every level of service and offering. Examples include expected turn-around times of client activities, levels of client communications and the number of meetings with clients based on their complexity and needs, according to 'Creating Growth: The Rewards and Challenges of the Multi-Location Model,' a recently released white paper by FA Insight and Pershing Advisor Solutions.”
Charles Paikert, in “Thinking Big: RIAs Go National”
Registered Rep Advisorland. March 1, 2011.
“Like the shift we have seen in how the industry services end clients, broker-dealers need to shift focus from 'sales’ to developing long term-relationships with advisors and being a vital business-building partner that supports growth of advisor practices.”
Dan Inveen, in “Pershing Study: Why the IBD Talent Market is Headed For Trouble and What Might Reverse the Trend”
RIABiz. March 1, 2011.
“FA Insight research finds demand for advice may outstrip supply of advisors; says recruiting must 'evolve' for BD to survive.”
James Green, in “Pershing Study Forecasts Shortage of BDs Reps”
AdvisorOne. February 15, 2011.
“The rise in firm-wide client relationship and client experience practices in advisory firms stem from an increasing focus on specialization, according to Dan Inveen, principal and director of research at FA Insight in Tacoma, WA. “It’s part of a trend we’re seeing as firms become bigger and move toward specialization.”
Dan Inveen, in “Wealth Management Firms Focusing On Client Experience”
Registered Rep Advisorland. February 9, 2011.
“According to the FA Insight study, the first challenges that multi-office firms experience stem from unclear protocols for how things should be done and inadequate quality control. These challenges affect every area, from how new clients are prospected and on-boarded to how recommendations are delivered and, in some cases, even to how reports are presented to them.”
Mark Tibergien, in “Location Dislocation”
AdvisorOne. February 1, 2011.
“Whether you are an owner who is just starting out, considering your business succession, or somewhere in between, growth is a necessity, yielding valuable outcomes that extend to clients and team members, as well as owners.”
Dan Inveen and Eliza De Pardo, in “The Necessity of Growth”
AdvisorOne. February 1, 2011.
“Losers will let legislation lead them,
winners will be led by the marketplace.”
Dan Inveen, in “The RIABiz List of Winners and Losers In the Wake of the SEC's Fiduciary Study”
RIABiz.
January 28, 2011.