A recent white paper highlights the role of broker-dealers in helping advisors stay on top of their game in what it takes to acquire affluent clients.The industry is changing not only from an advisor-client perspective but from an internal infrastructure perspective.
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Today’s client-advisor relationships are a departure from the single dimensional relationships of brokerage firm days. Clients expect advisors to offer them a depth of knowledge across the industry. They also expect them to be resources for areas outside their particular area of expertise.
There has to be a different infrastructure
within firms to facilitate this. Broker dealers need to provide training but they also need to provide a collaborative atmosphere that fosters introductions, referral alliance partners, intimate social events, and strategic networking.
The white paper shows that few industry veterans are recognizing this new way of functioning. They are stuck in their own way of doing things and have not recognized that the needs of clients have changed since the 2008 crisis. The attrition they are experiencing as a result along with their aging client base is putting their practices at risk.
Forty percent of clients with more than $5 million are not happy with the level of service they get. Advisors whose businesses are growing spend more time developing relationships with clients and wish their broker-dealers would provide more opportunities for skills development to attract affluent clients.