it for 15 years. It’s not going to happen.
I’ve got this.”
But we’re seeing it happen already.
It’s a real rude awakening.
Dolber: They need to talk to some
kids. My son graduated from college
and is an investment banker. He looks at
me and goes, “Why does anybody need
you? Why does anybody need an advisor
when I could do it all myself.”
I try to explain to him, “Yeah you’re
making a pretty decent living right
now. But five or 10 years out, when
you’re really making some money and
then you’re married, have three kids
and need insurance, everything is more
complicated. I don’t know if you want
to do that online by yourself.” But [advi-
sors] haven’t talked to my son … to win
Webber: That’s exactly right. And
how do we combine, not disintermedi-ate the human component [from the
technology], but weave it all together
and give those clients, like your son, the
technology tools that he needs to get the
basics and then the more complex? That
is the value proposition.
David Stringer, Prospera: It’s about
combining the advisor with technology
at the end of the day. But when I think
about the competition or the competitive challenges we have to deal with, regulation is the biggest
piece. Rulemaking by enforcement — because it feels like this
externalization of fees is underway right now, where the 12b- 1
is taboo and we’ve got to make it an advisory fee — this seems
like what’s driving the advisory business.
The Protocol for Broker Recruiting is another challenge. All
these firms backing away from it and trying to make it hard for
an advisor to leave [a firm]. Another challenge is technology
and staying competitive.
Webber: Our industry struggles, and we’ve talked about
this for years, but there still isn’t a common data format.
We spend millions and millions of dollars having to sort
through all of that [data] ourselves because a common data
format doesn’t exist.
Dolber: I told the regulators data standardization will set
you free. It’s true. We have 20 data loaders. We actually go out
and load all of our data [into our system] and normalize it.
It’s very expensive because there’s no common [format] —
data from the clearing firms tends to be a little bit common,
Cambridge Investment Research, Inc.
CEO Amy Webber
Years in Business 38
Producing Reps 3,296
Average Annual Gross
Production per Rep $280,224
2018 BD Gross
Revenue $906.7 million
Company data self-reported as of Dec. 31, 2018