A small industry of consultants don't manage any money but help wealthy investors pick financial advisers-those who not only create solid portfolios but have a steady employment history and obey to stringent fiduciary standards, or are able to add a specialty to a family office.
What it means to "go independent" has changed over the years. Plus, here's how advisers can effectively use technology. And, here's how advisers need to speak with some entrepreneurs. WSJ Wealth Adviser's Veronica Dagher reports.
In Chapter 18 of 21 in her 2013 Capture Your Flag interview, education software company executive Leslie Kerner answers "What Core Skills Did You Learn Working in Management Consulting That You Still Use Now?" Kerner learns communication skills that help her navigate uncomfortable situations working with client managers. As a Deloitte management consultant, Kerner builds conversation skills to address sensitive client topics in non-threatening ways that do not compromise project productivity.
Regulators plan to ferret out financial advisers who put clients in fee-based accounts that are inappropriate, says Dan Nathan, a partner at law firm Morrison & Foerster in Washington, D.C. Advisers can take steps to help them avoid scrutiny, he says.
Online investment services aren't just for young clients and low-balance accounts; "robo" advice can help any wealth advisory firm grow, says Bernie Clark, the head of Schwab Adviser Services. "Robo" advice is complementary and an opportunity, Mr. Clark says.
As retail assets under management grow, broker-dealers are negotiating more aggressively with fund companies, seeing a bigger share of their revenue. Advisers are seeking help with marketing, for example, and additional revenue streams.
With an aging financial advisory population, it's likely more young financial advisers will acquire advisory firms. But they do face hurdles, a competitive environment and difficulty raising capital among them.