Commentary on ThinkAdvisor article by Todd Kinart
Many in the wealth management industry have been focused on how advice practices are affected by regulatory changes such the Department of Labor’s fiduciary rule, Todd Kinart writes at ThinkAdvisor. But what they should instead be concentrating on, particularly independent broker-dealers, is firm culture, he writes.
Real Support, True Access, Dependable Partnerships
That’s because culture at a broker-dealer, more than anything else, is what determines growth for independent advisors, according to Todd Kinart, president and CEO of SII Investments, Inc., an independent broker-dealer that is part of National Planning Holdings, Inc.
Broker-dealers must foster a culture of true independence, but many firms merely pay lip service to the concept, he writes. To promote growth, broker-dealers must offer dedicated support and training in areas such as practice management and use of available technology, according to Kinart. Broker-dealers must also offer assistance to advisors in selecting their business model, he writes.
In addition, what’s more important for independent advisors than the occasional praise at an industry event is regular access to the broker-dealer’s top ranks, according to Kinart. Advisors must be able to have timely and candid conversations with the broker-dealer’s leaders on issues affecting their business, he writes.
Finally, independent broker-dealers should assess the type of support offered to advisors in times of rapid change, be it business challenges or regulatory issues, according to Kinart. What broker-dealers should aim for is a sense of partnership during such periods of unexpected challenges, he writes.
Advisors considering the type of broker-dealer to affiliate with have long concentrated on the resources and tools provided, according to Kinart. But what they’ll be looking at more and more going forward is the broker-dealer’s culture, he writes.
Source: ThinkAdvisor http://www.thinkadvisor.com/
Posted by: The Wealth Advisor
