RIAs and online brokers are winning the market-share game
Wirehouses will have to re-up retention bonuses or see mass migrations of top producers
Lisa, great information.
Thanks for publishing this article.
Mike Byrnes, President
Byrnes Consulting, LLC
Elmer Rich III
As marketers and business development specialists we support data- and evidence-based decision making as a key skill for successful firms. “We are easily convinced by data.”
Let’s unpack some of these numbers and ask some more questions. As a context, let’s remember that the population is growing, the older Boomer Investor population is growing and technology is increasing it’s use. So these external trends are occurring independent of any relative market share changes.
Let us ask some question for perspective:<ul> <li> “The percentage of commission-only advisors fell 40% between late 2009 and early 2011.” — Isn’t this likely to be due to B/Ds and brokers adopting more fee-based practices and no realy dramatic change in the market?</li> </ul> <ul> <li> “As investors threw the assets into self-directed online platforms, the market segment grew by nearly 20% in 2010.” On a relative or absolute basis?</li> </ul> <ul> <li> “Seventy percent of the conversations I have with top advisors they tell me that if they wanted more of the same, they’d stay where they are and wouldn’t go to another wirehouse,” This is predictable for someone offering search services and may, or may not, indicate a trend.</li> </ul>
It is always best to look behind the numbers in all surveys and data reports. Anecdotal evidence and personal experience are very limited sources of information and basis for decision making — as we tell clients about their investment behaviors all the time.
Just a minor note. I am assuming the “industry’s $13.5 billion …” really should be trillion.
Thanks Jim! Fixed.
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 at 4:30 AM
Schwab 2,000-layoff aftershocks roil the industry as it's revealed top tech talent -- led by widely regarded veteran Kartik Srinivasan -- were axed, raising questions about future of Schwab innovation
Behind every layoff a human story as pink slip to an 'unbelievable talent' epitomizes company's determination to cut $500 million in expenses.
November 3, 2023 at 3:49 AM
Charles Schwab Corp. discloses imminent, sweeping 'TD Ameritrade' layoffs, indirectly revealed in new SEC filing that reports it will expense severance mostly in 2023 to gain 'incremental' $500 million synergy in 2024 and beyond
The Westlake, Texas, firm had not previously disclosed the cost of terminations -- people and offices -- or that so many of the farewells will happen by Dec. 30
August 22, 2023 at 12:46 AM
Biz Briefs: The sorry scene at my local First Republic branch • Schwab launches new (smaller) lay-off round • Schwab hoovers pennies passing FINRA fee to clients • Gensler pleas for funds • Fidelity owner's private equity pres. retires • an Orion-Envestnet staff switcheroo • LPL dumps FutureAdvisor
Range Rovers screeched in and drivers joined a grim queue to get their cash, and cookie • The Schwab-TDA deal cull count now stands at roughly 3.5% of its staff • FMR's hockey star president has stepped down • SEC chief wants more enforcers • An Envestnet executive proves joining a rival is good business • LPL now has an in-house robot.
April 29, 2023 at 1:36 AM
See more related moves