More than 1/4 of financial advisers plan to exit industry or merge firms: survey

Financial advisers are feeling heightened pressure from regulators and clients, Natixis finds

Sep 29, 2016 @ 12:59 pm

By Liz Skinner

A quarter of financial advisers are planning a dramatic change in the way they operate their business within the next three years, a new survey found.

About 27% of advisers said they intend to sell their business, merge with another firm, retire or just leave the financial industry altogether during the next three years, according to a survey of 300 advisers by Natixis Global Asset Management.

Regulatory challenges are expected to raise compliance costs over the next several years, and some advisers believe that expense will become increasingly difficult to manage alone. In addition, clients have unrealistic investment expectations and are harder to please, wanting more for less, the survey found.

(More: With mergers poised to increase, are you ready for the next step?)

Advisers face costly challenges at the same time the nation has become focused on lowering investment fees, putting advisers in a difficult position, said John Hailer, CEO of Natixis Global Asset Management for the Americas and Asia.

“Low cost does not always equate to good value, and what's lost in the big picture is the importance of professional guidance and risk management, especially in today's complex and volatile markets,” he said.

Advisers seem to know they need to redirect client focus away from investment performance.

About 87% of advisers peg their success on their ability to demonstrate value beyond asset allocation and portfolio construction, the survey found.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Female leaders highlighted as future of financial advice

InvestmentNews recognized 20 Women to Watch for their efforts to advance the financial advice industry.

Latest news & opinion

Principal-Wells Fargo retirement deal would be among largest ever

Acquisition would be in line with trend of record keepers seeking to gain scale to combat fee reduction.

ESG options scarce in 401(k) plans

There's growing interest among plan participants, but reluctance to add funds that take into account environmental, social and governance factors persists.

Ameriprise getting ready to launch its bank

Firm's advisers will soon have access to lending products such as mortgages.

Envestnet acquires MoneyGuide for $500 million

Deal will allow Envestnet to deepen integrations between MoneyGuide and its other wealth management solutions.

Genworth move could signal big shift in distribution of long-term-care insurance

Insurers may turn to direct-to-consumer sales only, bypassing brokers and insurance agents.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print