News, Vision & Voice for the Advisory Community


The prognosis for Morgan, Merrill, UBS and Wells is even grimmer than the negative hype, Cerulli report shows

The wirehouses have stopped training, are ruthlessly chopping lower producers. and many advisors they'd like to keep march out the door

Author Lisa Shidler October 2, 2012 at 4:31 AM
no description available
Tyler Cloherty: Without organic growth, they'll continue to lose on both hands.

Stephen Winks

Stephen Winks

October 5, 2012 — 7:33 PM

If consumers have a say in outlook for wirehouses, regional b/ds, independent b/ds, dually resistered RIAs, RIAS, Banks and Insurance, market share will be won based on the depth and breadth of counsel, cost and service demonstrably in the best interests of the investing public. There are no broker/dealers which can compete on this basis, certainly no insurance advisors, the only segments that can compete on the basis of technical competency, cost and fiduciary standing are RIAs, thus an all important competitive markert advantage.

Though wirehouses clearily see the future and advisor productivity is in advisory services, the broker , by design, is still not responsible or accountable for their recommendations, and until the industry is prepaired to make advice safe, scalable, easy to execute and manage as a high margin business at the advisor level—it will loose market share to RIAs as will other channels of distribution that are focused on product distribution and not the well being of the conssumer and the investing public.

Very capable young men who have choices, will not acceptthe brokerage industry’s inability to adapt at the expense of the best interest of the investing public. More importantly, with the FSA now requiring fiduciary standing of advisors, outlawing commission sales, America is loosing its global advisory services leadership mantle to Singapor, Hong Kong, London, Australia who have embraced XBRL and the free flow of data essential for the continuous comprehensive counel required for fiduciary standing, not possible in the US where broker/dealers control data flow which impedes innovation.

This leadership vacuum in the brokerage industry, will result in the loss of US pre-emmence in global advisory services and places every broker in a inferior competitive markrt position—which dictates competitive market share. What is so sad is the brokerage industery knows its push back against the fiduciary standing of brokers is self defeating. Disclosing conflicts is not the equivalent of eliminating conflictss. It is that simple.—yet without positive steps to support fiduciary standing. the end result is a loss of relevence and forfeiting global market leadership and domestic market share.Unnecessary self destruction, if any broker/dealer, just one, were up to advisory services leasdership.


Related Moves

Plague of failed hires at strapped RIA firms 'come back to bite them,' making the process of closing bandwidth deficits falter, two new studies show

Turnover rates hover near 50%, Cerulli and Ensemble report, and may be worsening as hires in market of talent scarcity has inevitable backlash.

February 28, 2024 at 3:36 AM

The classic RIA era is sputtering and firms must 'decentralize,' hiring non-advisors to specialize, new Cerulli report shows, or RIAs will 'limp along,' a second consultant says

RIA principals have killed Wall Street with semi-solo shops -- only 35% have 'specialized staff' -- but the comfort zone must evolve for growth

January 13, 2024 at 2:24 AM

Orion rescinds RTO order after its staff rebels by hijacking company email list, distributing petition and tipping off RIA media

CEO Natalie Wolfsen suffers first setback and rescinds a return-to-office (RTO) policy after week of protest to work on a more collaborative agreement on a post-COVID new normal

November 23, 2023 at 12:20 AM

Orion Advisor Solutions calls 6% staff reduction a 'final action,' after ballooning headcount 40-plus percent since 2020 by gorging on Brinker, Redtail and five other companies

The Omaha, Neb., administrator of $3.6 trillion will cut 'duplicative' back office jobs to reduce staff to 1,320 from about 1,400.

September 30, 2023 at 2:31 AM

See more related moves

Mentioned in this article:

Cerulli Associates
Consulting Firm
Top Executive: Kurt Cerulli

Advisor Growth Strategies, LLC
Consulting Firm
Top Executive: John Furey

Aite Group
Consulting Firm
Top Executive: Frank Rizza

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo