This issue of Investment Advisor magazine has a number of articles that you should pay attention to, starting with Matt Lynch’s list of five trends that “matter.” The list is not going to surprise you—all of them are issues already on your radar screen, with visible blips comparable to attacking submarines—but Lynch reinforces your instincts and adds some substantive discussion. The most interesting, toward the end, suggests that an advisor should rethink his/her back office/custodial/BD relationship based on the variety of fees routinely charged out of your clients’ investment accounts.
Mark Tibergien tells us that the marketplace for buying and selling advisory practices is getting more sophisticated, and lays out the issues that both sides should be discussing. He hints (though doesn’t come out and say it) that mergers will be more common than purchases in this phase of marketplace consolidation. And Angie Herbers recommends that advisors who have enjoyed a high growth rate and started to build viable firms take the next step and appoint a CEO to manage the managers and keep the new enterprise organized in a way that the founding partners can no longer. Finally, if you want to drive away talented young advisors, Caleb Brown has some excellent advice for you.
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