Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Industry Spotlight > Broker Dealers

When Less Is More

By Elizabeth D. Festa

X
Your article was successfully shared with the contacts you provided.

It appears that the best broker/dealers limit the number of investment vehicles on their approved list. That’s one of the findings of The Art of Efficiency: A Holistic Approach to Operations, the new study by Moss Adams and sponsored by Pershing LLC affiliate iNautix (USA).

While one of the noticeable findings of the study was a link between operational efficiency and greater profitability, it also found that cutting down on the number of products and putting some discipline into product strategies also produces bottom-line benefits, according to Mike Nesspor of iNautix.

“Having 50 annuity providers seems excessive to me,” Nesspor says. It happens, he suggests, “when someone thinks they have to have a certain product on their platform, but they haven’t factored in the cost of delivering” the product onto the platform.

For example, the survey found that the median number of separately managed account managers in top-performing broker/dealer firms was seven, compared to 31 in all other firms surveyed.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.