Advisers say regulation will be biggest shaper of business

Advisers say regulation will be biggest shaper of business
Other factors include changing client demographics and technology innovation, according to a new survey
FEB 26, 2020

More than half of financial advisers believe regulation will be the most significant shaper of the advice industry over the next three to five years, according to a new survey by CoreData Research.

Demographic change, cited by 50% of the 200 advisers polled, and technological innovation, cited by 49%, are also expected to be prime forces shaping the wealth management business in the years to come, the research firm said in a release.

About four in 10 advisers (44%) say the low-return environment, geopolitical risk (44%) and fee compression (41%) will affect the business as well. Less important, survey respondents said, will be market volatility (39%), the macroeconomic environment (35%), the impact of fintech (20%) and industry consolidation (10%).

As far as business growth over the next few years, 74% of advisers said the most important factor will be the ability to demonstrate value beyond investment advice and portfolio management. This is followed by capitalizing on the intergenerational wealth transfer opportunity (57%) and attracting younger clients (44%).

A further 44% said improving economies of scale to offset fee compression is important to business growth, while 37% cited the importance of implementing a digital strategy for clients.

Latest News

The fight over the CFPB is just beginning
The fight over the CFPB is just beginning

Locked out of their offices and told to stay home, employees at the Consumer Financial Protection Bureau have asked the courts to intervene as Elon Musk and Republican leaders move to shut down the agency that was established to protect people from predatory lending and financial scams.

Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership
Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership

Fintech platform interVal has also introduced a new feature to help advisors support entrepreneurial business owner clients better.

LPL boosts revenue potential with amped-up alts platform
LPL boosts revenue potential with amped-up alts platform

Along with greater revenue, alternative investments also carry risks, one industry lawyer noted.

How SageSpring Wealth Partners' next-gen strategy has fueled its success
How SageSpring Wealth Partners' next-gen strategy has fueled its success

President Jeff Dobyns unpacks the strategic power of mentorship, what makes an "ideal team player," and how the firm's 89 percent success rate has paid off for veteran advisors.

Powell heads for hot-seat hearings with ongoing pressure from Trump policies
Powell heads for hot-seat hearings with ongoing pressure from Trump policies

The Fed chair is in for some "hyper-charged" meetings, with legislators likely to raise questions on tariff threats and apparent steps to comply with anti-DEI orders.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.