What's next for 'Super Ensemble' practices?

Oct 25, 2013 @ 12:00 am

Runtime: 2:26

Pershing's Kim Dellarocca discusses the growth potential for the advisory industry's largest firms.

Video Transcript

We see some of the next levels of growth for these types of firms really around three things. The first is as they brand themselves, they're going to the market as a wealth management firm not as John RIA. The second firm which is making the transition from being a firm that is led and everything sort of evolves around the founder, to a firm that relies on many people who are all making contributions. And the third is having firms be, these are no-- these is no longer a cottage industry where, you know, you've surround it with a small business feel and it's okay if people come and go. This is a place now that has to be run like any professional organizations. So you'll see more of an investment in human capital. You'll see more of an investment in career paths, more of an investment in the employee and client experience and making sure that we're not ever in this position again where we're caught off guard by lack of succession planning or any other situation that puts our clients' or our associates' futures at risk. An example that we like to use is-- Here we are in New York City and those of us who are frequent at Danny Meyer's restaurant, our use of a boutique, a very intimate experience with a certain level of service and an exclusivity to it. There's also probably somewhere in the same neighborhood, an Applebee's or a Friday's, a chain restaurant of some sorts. We think that these super ensembles in certain firms will really evolve into that Danny Meyer's level of providing a wealth management experience. It's really topnotch that's much more beyond solving a few problems and really embracing the entire client's life and almost a concierge level of wealth management, similar to what you try in a family office today, but we'll start to see that more systematically. And offered by many, many of these top RIAs. They will always be a place for larger, larger served household names like the Applebee's and the restaurant exampled where people want a casual meal or sort of just going in to be fed, to have a financial plan, or something like that, and you've met. That's really how we see the evolution of this business going.

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