Fidelity primes the referral pump for RIA clients
A new program gets a warm reception from advisors ready to snap out of hand-holding mode
Fidelity Investments loses Kathleen Murphy who largely caught up Fido to Schwab (near $4T) on the retail side by reversing net promoter scores
The 'no whining allowed' leader of the Boston giant's retail business, who oversaw $2 trillion in net new assets, was ready to exit but hung in through a year dominated by COVID-19 challenges
January 23, 2021 – 2:02 AM
Fidelity Institutional looks like a big TAMP after Mike Durbin removes last internal walls between products and advisors after 'meteoric' 2019 leap; two Fido RIA sales legends depart amid the shift
Rich Policastro and Tom Valverde are out after Fidelity Custody & Clearing assets leap to $2.6 trillion AUA, restructuring gets the credit -- and so restructuring gets extended.
March 13, 2020 – 10:36 PM
TD Ameritrade's board suddenly pushes out Tim Hockey after his big misread of RIAs; Tom Bradley name-dropped as successor
The CEO broke the TD promise never to compete with RIAs, took it back and got sent packing
July 23, 2019 – 4:30 AM
Capital Group miraculously recovered after deep 2008 dive but RIA help may get No. 2 American Funds through the next downturn under new CEO
Matthew O’Connor takes the CEO helm of the giant LA-based active manager from Kevin Clifford with conviction not to jam the rudder hard but to be open to new markets
November 2, 2018 – 9:26 PM
Hats off to both Fidelity and Schwab for helping their advisors with referrals.
It was interesting to read that Fidelity and Schwab see a significant difference in the new business percentages that their advisors attribute to referrals. Maybe the “51%” and “80%” quoted above are not an apples-to-apples comparison. From my experience with well established advisors, I see 70% comes from client referrals, 20% comes from strategic alliances and 10% comes from other sources. Of course, all business models are different. For example, a less established advisor doesn’t have the clients to provide referrals, so they need other marketing activities to drive new business (and vice versa.)
As a majority of advisors’ new business comes from client referrals, I see improving the strategic alliance referrals as a significant area for advisors to improve their new business strategies.
Mike Byrnes, President, Byrnes Consulting, LLC, www.byrnesconsulting.com