Retail Brokerage Spring 2010 Quarterly Report

In the wake of the 2008-2009 double setback of recession and the market downturn, the spotlight has shifted to the economics of the financial advisor channel’s business. What strong markets obscured, weak ones have brought to the fore. The inhospitable fund sales environment, reinvigorated regulatory scrutiny, and greater emphasis on fixed income asset classes are translating into margin pressures. Today’s financial advisor firms face the challenge of drafting the channel’s future expansion plans while addressing the economic constraints of the prevalent business model. The feature research article in the just-released Spring 2010 issue of The Retail Brokerage Report expands our coverage of the financial advisor channel, providing new perspectives on how the changing market environment is impacting the future direction of the industry. The focus is on the pressures emerging on the revenue and cost sides of the economic equation, and how financial advisor firms and their advisors are managing the risks and demands of an increasingly complex value proposition anchored in financial planning. This research article is essential reading, not only for financial advisory firms, but also for brokerage firms and product manufacturers—including independent fund companies, banks and integrated financial services organizations—looking to build or expand their presence in the financial advisor channel.