Industry evolution: What's next for RIAs?
October 26, 2016 2:52 PM
Over the past decade, the industry has changed dramatically. But what does that mean for the future of RIAs?
Advisers are gearing up for even more advancements (and challenges), according to the most-recent Schwab Advisor Services' Independent Advisor Outlook Study. Respondents weighed in on the future of the business — from how they run their practices, to robo advisers and meeting tougher compliance requirements. Click through to see the findings.
Advisers are gearing up for even more advancements (and challenges), according to the most-recent Schwab Advisor Services' Independent Advisor Outlook Study. Respondents weighed in on the future of the business — from how they run their practices, to robo advisers and meeting tougher compliance requirements. Click through to see the findings.
Responses to the study over the last decade reflect the growth and evolution of the industry.
As time goes on, advisers expect to spend less time focusing on portfolio management and asset allocation. Respondents also said they anticipate many advisers will opt to work less often in their physical offices.
Advisers are concerned they will spend more time worrying about compliance, the survey showed. However, many advisers report that they expect they'll be able to devote more time to talent acquisition and comprehensive financial planning.
RIAs said the most critical issues for success in the next decade are evolving their client service models, integrating technology, finding and retaining talent and keeping up with growing compliance demands.
In the regulatory space, advisers said fiduciary standards, fee transparency and cybersecurity had the greatest potential to strengthen the business.
Despite intense industry scrutiny of the Department of Labor rule, many advisers don't think the new regulation has raised client awareness of the importance of fiduciary standards, the study showed.
Very few advisers expect the regulatory environment to become less complicated in the coming years.
Since 2009, clients have come from increasingly diverse backgrounds both outside and within the industry.
Advisers remain split on whether or not firms will adopt robo technology over the next decade.
