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Investor Economics

Retail Brokerage and Distribution Spring 2015 Quarterly Report

Practices Changes Reshape the Profitability Model

The past two years have produced solid growth in terms of assets and clients in the full-service brokerage channel. The bigger question for many of these firms has been about profitability and sustainability of the intermediated model. With CRM2 preparation/implementation well underway, a continued transition away from commission-based revenue lines, and an aging advisor workforce, distributors are increasingly finding themselves with a lot of change on their plates. This feature focuses on how the channel is changing, and, importantly in some cases, how it is not changing, from both a revenue and expense perspective.

The feature provides an excellent reference point for some of the shifts that are occurring in the channel, and their economic impacts. It is an important read for both distributors and product manufacturers looking to understand the economics of the channel as well as their role in the profitability of the intermediated advice business.

Report Information

  • Tags: distribution channels, intermediation, wealth management

  • Date Posted: June 25, 2015