Some financial service industry experts
believe the industry has reached a major crossroad and that the
bloodletting has already begun. For the first time in over
fifteen years, we have seen a decline in the number of registered
financial professionals and, perhaps, this is just the beginning.
Perhaps, the light at the end of the tunnel is actually a train.
Please consider that in Great Britain a bit more than ten years ago,
there were about 300,000 licensed financial professionals, while
today there are a mere 44,000! Why did this happen? The
investing public is beginning to perceive “sameness” in financial
products, services and indeed in advisors themselves. Not
actually a bad call when you really think about it. After all,
what is actually the difference between two large mutual fund
families or between average Reps at two large wire house firms?
Additionally, Great Britain has already undergone complete market
and fee transparency, an event which is in progress in this country.
Some view these events with despair, but indeed they represent
multiple opportunities for those willing to work to take advantage
of them. Opportunities for recruiting both clients and other
brokers for your operations. For those who “add value and
service” to a client relationship, who are willing to create proper
plans, to properly diversify client portfolios, and to show clients
products others either do not have or do not understand, the light
at the end of the tunnel is indeed a bright future,