Cybersecurity, markets and fee pressure top RIA concerns

Survey finds regulation to be a lesser worry, with firms split over impact of DOL rule

Mar 9, 2017 @ 2:40 pm

By InvestmentNews

Cybersecurity and the possibility of a market correction are at the top of the worry list for executives of investment advisory firms.

One-hundred percent of the RIA firm leaders surveyed by their trade group, the Investment Adviser Association, and Boston-based research firm Cerulli Associates said that they were either moderately or very concerned about those two issues over the next 24 months, compared with 82% who felt the same way about fee compression and regulation.

The majority put a priority on near-term investments in technology to address cybersecurity concerns (89%), to improve data management and analytics (76%), and to implement regulatory/reporting requirements (76%).

Executives at RIA firms were split over the impact of the DOL fiduciary rule, whose future is now in doubt. More than a third – 38% – see it as the single biggest opportunity for increasing business over the next 12 months, while 21% cited it as a significant threat to business, the survey found. Similarly, 31% saw robo/digital advice platforms as a threat, while 17% saw them as an opportunity.

In general, the survey found that firm executives were optimistic, with 63% planning to add to their workforces over the next 12 months. They also were virtually unanimous (98%) in identifying development of the next generation of talent as the most important initiative for ensuring firm profitability.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Dynasty's Penney: Top RIA trends for 2018

What's next for RIAs? Dynasty's Shirl Penney talks about the growing numbers of entrepreneurial advisers. Plus, what inspired his own entrepreneurship.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print