This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Pershing Recommends Four Strategies For Advisors Looking To Capitalize On Today's Industry Challenges And Build A Long-Lasting Business

JERSEY CITY, N.J., Feb. 13, 2013 /PRNewswire/ -- Pershing LLC, a BNY Mellon company, today announced the release of its latest study, Advisor of the Future II: Building a Business to Last. This independent study details how the advisory industry can respond to the challenges that many advisors face. Implementation of the four strategies outlined in the study can help firms generate income, earn a reputation for providing quality advice, providing superior client service and establish a sustainable business.

The impact of a slow recovery following the financial crisis of 2008 is still felt by many advisory firms. Left unaddressed, these firms will struggle to capture their share of the predicted $850 billion in new investible assets that could potentially be available each year for the next decade. But with the financial advice industry at a crossroads, forward-looking advisors have opportunities to increase their chances of long-term success.

"There are a number of challenges that can impact the long-term growth prospects for advisory firms. That's why  it is important to prioritize those that will have the greatest impact on their businesses in the near future," said Mark Tibergien, chief executive officer, Pershing Advisor Solutions "Firms need to focus on building a talent base of younger advisors to meet the anticipated client demands over the next decade.  They also need to be informed on the implications of compliance requirements and to be prepared to deal with competition by maintaining a superior value proposition using a cost-effective business model."

Pershing's study arms advisors with four solutions that can be implemented to address firm-specific troubles, including:

  1. Elevate the value of advice – To support business development and client retention efforts, advisory firms must acknowledge investors' changing advice consumption patterns, how the consumerization of technology impacts the relationship between investor and advisor and the growing sentiment that consumers can manage their own financial affairs.
  2. Reimagine the right talent – The lack of young, qualified advisors entering the industry requires greater focus on people management skills and long-term staffing solutions. Advisory firms must build an infrastructure for progressing individuals through the ranks and offering them a clear career path, as well as widen their focus to include new talent pools from NextGen and more diverse populations.
  3. Adopt a business-like approach to service delivery – Advisory firms must address the increasing competitive and regulatory pressures they face. Firms can improve productivity, control costs and realize scale by finding efficiencies in workflow through the use of technology and human capital.
  4. Create a culture of compliance – Regulatory requirements force advisory firms to put client interests first, embrace a culture of compliance and maintain a risk management infrastructure that connects the C-suite to service personnel. Adoption of a proactive approach to regulation will help to establish and maintain operating and servicing standards that are well above regulatory minimums.

"Our industry learned difficult lessons over the past four years. Advisory firms have shown resiliency in meeting demands of financial markets, consumers and regulators. Now it is time to adapt to the new normal and focus on plans to ensure continued success," added Tibergien.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,075.94 -22.51 -0.13%
S&P 500 2,002.27 -1.10 -0.05%
NASDAQ 4,590.2930 +10.0220 0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs