The future of financial and investment advice is complicated.
In his August column for Investment Advisor entitled “What Will Become of Us?” Mark Tibergien posed several questions regarding the future of investment and financial advice and potential challenges (from Amazon, from custodians, and from the Securities and Exchange Commission and Financial Industry
Regulatory Authority) that might emerge. He went on to offer a few predictions.
Mark is correct to point out that evolution will continue in the financial and
investment advice space, and perhaps even accelerate. The pace of change will vary
over time, and it will be affected by new competitors and regulatory developments.
The following are my own predictions of the future changes that will likely occur
in the financial and investment advice profession — and how these shifts will impact
registered investment advisors, in particular. Between the dangers posed by the SEC’s
Reg Best Interest to broker-dealer business models, as well as the substantial increase
in consumer’s knowledge of, and demand for, fiduciary advice, the investment advisor
profession will continue its strong growth in the years ahead.
Ahead for RIAs?
By Ron Rhoades, JD, CFP