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At Envestnet event, Sallie Krawcheck alludes to Crager alliance, blasts women-as-niche marketers and edges perhaps closer to endorsing the RIA model

The former wirehouse exec is satisfied with her own 'gal about town' status but not 'Republican' tendencies of financial advisors

Tuesday, May 7, 2013 – 4:27 PM by Lisa Shidler
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Sallie Krawcheck: I worry our industry will become the Republican party -- with middle-age white guys talking to middle-age white guys, saying that we need to change.

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Mentioned in this article:

Envestnet Inc
Top Executive: Jud Bergman

Jeff Spears

Jeff Spears

May 7, 2013 — 5:02 PM

I hope Sallie breaks away and joins a RIA.
The gating issue is $
She probably made $5-10 million/year at BofA. That would be hard to replicate at a conflict free RIA!

Stephen WEinks

Stephen WEinks

May 7, 2013 — 6:00 PM

It is not that Krawcheck is beginning to warm to independents from her wirehouse perspective. It is she understands the brokerage industry, both wirehouses and independents, must evolve and neither are there yet. The consumer’s best interest is not being acknowledged or supported by either brokerage format. Thus, Krawcheck’s views are very consistent. Presently the industry is addressing none of the professional development challenges which support professional standing because of its fear of fiduciary liability. This requires professional management.and know how not possible in a brokerage format.

Fifteen years ago, my guess was that Jamie Dimon was the most likely candidate at Shearson, Lehman, Hutton to support fiduciary counsel, before he moved to fame and fortune at JP Morgan.

Krawcheck was the only major firm executive that had the guts to support fiduciary standing of brokers, for which she has paid a heavy price, as not being on the team.

Could it be that Sally Krawcheck is the industry executive that actually embraces the advances in exoert authenticated prudent investment process, advanced technologfy, work flow management that mades advice safe, scalable and easy to execute and manage as a high nmargin business at the advisor level. None of this is possible in a brokerage format and Krwacheck knows it. She also knows properly resourced advisors can provide an unprecidented level of investment and administrative counsel at a lower cost than a packeage product while increasing broker compensation by 50% . This is disruptive innovation in the consumer’s best interest—that every broker and every advisor is attracted to because, given the option, consumers will choose it every time.

Do Krawcheck and Envestnet understand the vulnerabilities of our klargest brokerage firms as high cost low value added solutions?

I think we are going to find out pretty soon.

Sally now knows who her friends are now, which greatly benefits the consumer, the advisor and the industry..


Paula Johnson

Paula Johnson

May 7, 2013 — 6:44 PM

As a former advisor and branch manager, I find it not only refreshing but personally liberating to see Sallie have the courage and credibility to be honest and dead on. The industry has survived for decades ignoring women whether it be as clients/advisors/managers/executives.

Camouflaging the marketing campaigns with the latest “niche” target will not work. Authenticity works. Clients are more savvy and women have always been focused on what matters most – those who care most about them and their needs, wants and desires.

It is not going to be business as usual moving forward. Let’s hope that Sallie continues to use her voice and her insight to educate the public and that the industry will get her message. Jeff, I’m guessing that the money is not the issue for her. I will wager that Sallie will find the home that aligns most with her values and integrity and that appreciates her acumen. If not, I will enjoy listening to her wisdom from the sidelines.

Brooke Southall

Brooke Southall

May 7, 2013 — 6:52 PM


You write very fluidly. Consider becoming an RIABiz columnist.

I think you’re right. But I think Jeff is right, too. No, money won’t be her guide but, yes,
making $200k a year isn’t going to be enough.



Paula Johnson

Paula Johnson

May 7, 2013 — 7:08 PM

Sure Brooke and having met Jeff, I know he has a real pulse on things. I’m just holding onto the crazy notion that money will not be her lure. Thanks for the posting and the opportunity to engage.

April Rudin

April Rudin

May 9, 2013 — 1:17 AM

Go Sallie Go. I feel your pain. Wall St types are, for the most part, baby-boomer aged guys who don’t like change. These men reinforce each other in refusing to embrace a world which is ever-rapidly changing around them. Oh, and women are not a niche. I think that now I will advise my wealth management clients to look at “men as a niche”... Go Sallie Go.



May 20, 2013 — 1:44 PM

“ This was not an article about the ria model. It was another attempt at publicity and a bias attempt to excite her NICHE. What is her niche? Ironic enough its women.

She said that one of the industry’s worst problems is looking at women as a “niche” when in f act they make up the majority of the population and are more often than not breadwinners.”

FALSE men are still by far the lead breadwinners

Often, she observed, women are much more successful financially as they grow older, especially compared with men.

What does this even mean? where is the axis here, where is the “successful” cross over point. How is this measured and confirmed?

To illustrate her point, Krawcheck referenced Hillary Clinton, House minority leader Nancy Pelosi and television executive Pat Mitchell

No man holds similar or higher positions?

Women are a niche market, so are men, so are doctors etc. The fact that she ignores this shows she is selling to her niche market….women.

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