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.
These online financial advisory services are reinforcing a different set of expectations among their clients by offering lower costs and greater transparency, but they do have their limitations, says Grant Easterbrook, senior research associate at Corporate Insight.
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.
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.
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.
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.
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.