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14th April 2014

Advisor Migration Projected to Grow Independent Channels

According to research from global analytics firm Cerulli Associates, advisor migration is projected to grow independent channels to 38% of asset marketshare through 2016. "We anticipate the registered investment advisor and the dually registered channels are going to be the beneficiaries of advisor movement," states Kenton Shirk, associate director at Cerulli. Cerulli's Intermediary Distribution 2013: Managing Sales Amid Industry Consolidation report examines the distribution of financial products within the U.S. The report includes advisor marketsizing, advisor product use, and asset manager sales organizations. "Across the advisor industry, there is a strong desire for independent operation and ownership. The draw of autonomy, combined with the trend toward fee-only relationships, has enhanced the appeal of the independent channels," Shirk explains. To manage advisors transitioning between channels, Cerulli recommends that distributors clearly delineate ownership, empower divisional sales managers to track advisor transitions, and standardize transition hand-offs between wholesalers to ensure relationship continuity with the firm.

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Advisor Migration Projected to Grow Independent Channels

According to research from global analytics firm Cerulli Associates, advisor migration is projected to grow independent channels to 38% of asset marketshare through 2016.

“We anticipate the registered investment advisor and the dually registered channels are going to be the beneficiaries of advisor movement,” states Kenton Shirk, associate director at Cerulli.

Cerulli’s Intermediary Distribution 2013: Managing Sales Amid Industry Consolidation report examines the distribution of financial products within the U.S. The report includes advisor marketsizing, advisor product use, and asset manager sales organizations.

“Across the advisor industry, there is a strong desire for independent operation and ownership. The draw of autonomy, combined with the trend toward fee-only relationships, has enhanced the appeal of the independent channels,” Shirk explains.

To manage advisors transitioning between channels, Cerulli recommends that distributors clearly delineate ownership, empower divisional sales managers to track advisor transitions, and standardize transition hand-offs between wholesalers to ensure relationship continuity with the firm.


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