Evolving industry needs redefinition

Our mission at InvestmentNews has always been to provide quality news and information to financial advisers that will help them make informed decisions for their clients and their practices.
For the past 15 years, we have done just that. And while news traditionally has been our primary focus, in the past few years, we have focused more on bigger-picture issues that are important to the advancement of the financial advisory industry.
From an editorial and business standpoint, we are viewed as a thought leader, and we take that responsibility very seriously. We listen to what our readers have to say, and we continue to find ways to adapt to the changing ways they want to receive our content.
This progression is a constant within all media companies, and we have had to adjust to an ever-evolving business model. Advisers, too, are faced with this.

RELATIONSHIP VS. TRANSACTION
The advisory business is evolving into more of a relationship business versus a traditional transactional business. More and more advisers are paid a fee for their services instead of a commission.
The psychology of investing, holistic advice and life planning are taking center stage, replacing returns on investments, and discussions around stocks and bonds. I believe this adds up to the need for a redefinition of what constitutes a financial adviser and a reconsideration of what he or she does. The skill sets needed now and in the future center much around communication, listening and attention to detail. And to go a step further, the new financial adviser model plays to the core strengths that many women possess.
We have seen the many studies and research reports that highlight the shortage of women in the financial services industry. Not only are there few female financial advisers, but they are also missing from the ranks of senior leadership at broker-dealer firms, custodians, investment firms and insurance companies.

ROOM TO GROW
It’s evident that while this industry has come a long way in 15 years, it still has plenty of room to grow. And some of this has to do with the attitude that still exists within parts of the financial services industry. A case in point: Less than a month ago, Paul Tudor Jones, the head of Tudor Investment Corp., told an audience at the University of Virginia that he thinks it’s difficult for women to be successful macro-traders if they have babies, because of the potential for distraction.
While this may be an isolated and extreme instance, it’s worth bringing to light. It is evident there needs to be a change in attitude if any real progress is going to be made.
Because one of our roles as the industry newspaper is to bring important issues to the fore, InvestmentNews has focused a great deal on the subject of women and investing, and what that means for the advisory industry.
Over the past two years, we have dedicated news coverage, created a video series and offered a variety of webcasts to address this important topic. While our coverage may not resolve this issue, we believe that by bringing it front and center, we will inspire, educate and create change.

NEXT GENERATION
Another important issue facing the advisory industry centers around the next generation of advisers. The average age of an adviser is 56, and most have no real succession plan in place. In general, the advice business has not found a way to solve the impending shortage of talent.
It’s even more confusing when you consider that Yahoo Finance rated financial adviser as one of the five best jobs to have in the country. So why aren’t the numbers growing? And more importantly, what is the financial services industry doing to address it?
To start, I submit that recruiting a new generation of advisers requires the redefinition of what an adviser is and what he or she does. If the goal is to attract and retain the best and the brightest among young people entering the workforce, then industry thought leaders need to get the word out fast. Some firms have been developing new initiatives around this topic. The industry needs more of these forward-thinking firms to help solve what could be a huge problem in the future.
Understanding the need to bring light to this issue, InvestmentNews last year launched a next generation initiative, specifically devoted to addressing the lack of new talent coming into the industry. We have created a series of webcasts and even a virtual career fair aimed at college students enrolled in personal financial planning programs.
So after 15 years, as a part of our overall mission, we look to continue to challenge ourselves and the industry to be better.
We encourage advisers and corporate leaders to redefine the advisory business and to communicate this to the many who have misconceptions about this industry.
We appeal to large and small organizations to refocus their efforts on the empowerment of women in the business. And we ask you all to create and support plans to educate the next generation about the career opportunities within the advisory business.
It has been a privilege to have been a part of your business for the past 15 years, and I look forward to many more years to come.

Suzanne Siracuse is a vice president of Crain Communications Inc. and the publisher of InvestmentNews