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.
Choice anxiety, prestige bias, and the temptation to make selections based on outsourced confidence are just some of the parallels between investing and the world of wine tasting.
Regulators found Bank of America's monitoring software had a known flaw Merrill left uncorrected for years.
While AI has become a go-to research tool for affluent investors, new HSBC research suggests human advisors remain the deciding voice when investment decisions are made.
A 5-4 ruling preserves the Federal Reserve's independence for now, but the legal fight over presidential removal power is far from settled.
For years, large firms have been facing penalties and questions from regulators over interest rates for clients’ cash accounts.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
