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Why the RIA business starts 2016 without its swagger: 2014 and 2015

What's hot right now? Almost nothing and nobody. But it might be a 'healthy correction' of equilibrium

Author Brooke Southall January 11, 2016 at 11:42 PM
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The 2014 RIA hype frenzy may have peaked when suddenly Tony Robbins was everywhere.

Rudy Adolf


Joe Duran


Elliot Weissbluth


Fred Tomczyk


Barbara Holzapfel

Stephen Winks

Stephen Winks

January 12, 2016 — 4:22 PM

The industry is self correcting. (1) It is finding ways to resolve 40% of the earnings on retirement savings being lost to brokerage fees, commissions, and administrative cost. (2)The SEC is nailing down more reasonable administrative cost of mutual funds (presently confused with broker compensation) in the best interest of the investing public. (3) FINRA is focused on the industry streamlining of cost, conflicts of interest and brokerage culture which has thwarted innovation in advisory services in the client’s best interest. (4) ROBOs and Algorithmic advice has pegged the cost of advisory services support materially less expensive than TAMPs, making the mechanics of advisory services less important as the skill and counsel of the RIA is the ultimate value added. (5) RIAs increasingly demand world class advisory services support which is consistent with fiduciary duty and technical competency in the clients best interest that accords professional standing. (6) RIAs are no longer exclusively dependent on B/Ds for advisory services support as they can replicate far superior support at far lower cost than b/ds afford. (7) RIAs will focus on (a) maximizing their margins (b) enhancing client service/value proposition, (c) at a lower cost than b/ds and will (d) net more compensation than brokers who are focused on maximizing their payout. (8) The industry must find a way to better serve the best interest of the investing public at lower cost that supports professional standing and fiduciary duty.

In this vein 2016 will be an extraordinary year for RIAs.

Stephen Winks

Stephen Winks

Stephen Winks

January 12, 2016 — 4:32 PM

Forgot to add (9) SEC commissioner Stein is calling for TAMPs and ROBOs to authenticate their fiduciary standing which will clarify existing holes in advisory services support, to the benefit of all.


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Mentioned in this article:

LPL Financial
RIA-Friendly Broker-Dealer, RIA Welcoming Breakaways, Advisory Firm
Top Executive: Dan Arnold

SS&C Advent
Portfolio Management System
Top Executive: Robert Roley

eMoney Advisor LLC
Financial Planning Software
Top Executive: Edward O’Brien

Financial Engines
401k Plan Consultant

United Capital Financial Advisers
RIA Welcoming Breakaways
Top Executive: Joe Duran

Envestnet Inc
Top Executive: Jud Bergman

Focus Financial Partners, LLC
Consolidator/Roll-up Firm
Top Executive: Rudy Adolf

Portfolio Management System
Top Executive: Eric Poirier

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