August 24, 2010
It is no secret that advisors are moving towards a fee-based business model to better meet the needs of their clients, creating a shift that enables many advisors to operate under a hybrid model. Cerulli Associates reports that at the end of 2009, approximately 11 percent of the more than 300,000 practicing advisors were dually registered as both investment professionals and independent registered investment advisors (RIAs), and this number is growing. This business model is a natural evolution of the commission- and fee-based business approaches that we have seen for so long.
At the same time, broker-dealers are seeking the tools to accommodate the needs of these hybrid advisors. The shift has created new challenges in supporting these advisors, and broker-dealers are seeking a solution to help advisors operate more efficiently and effectively.
A common question I hear is, "How can Pershing help me support and attract all types of advisors?" We have an answer. It's called RIA Complete™, Pershing’s comprehensive program to help broker-dealers meet advisors’ growing needs for different affiliation models. RIA Complete can help you create or enhance your strategic plan and provide the tools and solutions necessary to effectively compete in today’s changing advisor landscape.
This is done by showcasing the value, cost effectiveness and ease of using fewer custodians. Since many advisors leaving the wirehouse environment can’t afford to simply walk away from their commission businesses, Pershing offers one complete technology platform that supports both commission- and fee-based business models. Pershing’s technology platform, NetX360™, combines the best of commission, advisory and managed account solutions.
Pershing has the solutions in place to help your firm meet the needs of advisors, and RIA Complete can be the road map and strategic answer to attracting advisors to your firm. Visit here to read more about our RIA Complete offering. And look for a new white paper this fall from Pershing on the economics of constructing a hybrid advisor platform.
Jim Roth
Managing Director,
Pershing LLC