Advisory firms have to stop treating all advisers the same

Top performers should be given preference for advancement, according to one consultant.
SEP 08, 2017

Financial advisory firms that want to nurture the best and brightest advisers need to stop treating everyone at the firm the same way, according to Philip Palaveev, chief executive of The Ensemble Practice. Acknowledging that his advice strayed beyond the bounds of political correctness, he said firms can't develop good leaders by dwelling on what might appear to be fair. "A business is not a family, and that means you cannot treat all of your people the same," Mr. Palaveev said at the Insider's Forum in Nashville on Thursday. "You have to identify your top performers and give them more time and resources and training." (More: Top financial advisers' tips for landing seven-figure clients) Detailing the various stages of becoming a trusted leader and top adviser at a firm, he cited examples of firms that have moved people to the next level simply because they were the only ones left who had not yet been promoted. "Most of the business leaders I see are not recognizing their top performers the way they should be," he said. "Opportunity is the fuel of a career, and the top performers deserve opportunities first." Mr. Palaveev laid out a career track that begins with an associate adviser who is learning the business and the software. That professional then moves to the service adviser phase, where they start learning to build relationships with clients. After about six years with the firm, a professional should be advancing to the lead adviser role, where the adviser is managing client relationships and becomes trusted to "take a client by the hand," he said. The final stage is the ownership position, a role that might not be in the cards for all advisers. (More: Bob Veres predicts new investment model that could give advisers edge over competition) For younger advisers, Mr. Palaveev said they should expect to work long, hard hours developing their skills and learning the business. But he added that a firm should have a clear career path to offer direction and motivation to all advisers at the firm. And advisers should embrace the notion that special opportunities are earned, not just given out. "When we treat everyone equally, unfortunately we tend to discriminate against the best players on the team," he said. "A career track is for everyone, but you shouldn't try to push everyone along that track because it's not for everyone."

Latest News

Finra's Reg BI Enforcement: Is it 'ineffective, costly'?
Finra's Reg BI Enforcement: Is it 'ineffective, costly'?

The industry watchdog's own reports reflect failures to deter "willful" and "repeat" violations, raising a crucial question about the future of regulation.

SEC prepares to back away from defending climate rule in court
SEC prepares to back away from defending climate rule in court

Acting Chairman Mark Uyeda directed SEC staff to initiate a pause in court while the commission awaits a quorum. The SEC may decide to withdraw from defending itself in a lawsuit over last year's climate disclosure rule.

wealth.com welcomes Kathy Wunderli in private wealth push
wealth.com welcomes Kathy Wunderli in private wealth push

The top estate planning platform's veteran hire will lead its legal team's efforts to develop estate planning, tax analysis, and wealth transfer solutions for ultra-high-net-worth clients.

Morgan Stanley loses $843,000 investor claim stemming from 'gold bar' scam
Morgan Stanley loses $843,000 investor claim stemming from 'gold bar' scam

“If Morgan Stanley had called my client’s son, this wouldn’t have happened,” the investor's attorney said.

LPL welcomes $630M sibling advisor duo from Corebridge
LPL welcomes $630M sibling advisor duo from Corebridge

Meanwhile, Ameriprise has bolstered its own ranks as an LPL defector joins its branch channel in California.

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.