A report from Aite Group found that the majority of the advisors surveyed classified themselves as planning-focused, 35%, a segmentation strategy that could become more important as lawmakers move to enact a fiduciary standard.
Some 17% say they are planning-driven. Remaining advisors classify themselves as planning-selective, 10%, planning-challenged, 22%, and investment-focused, 16%.
Broker/dealers have an important reason to help these last three groups of advisors: 76% of planning-driven advisors recognize it as an effective client acquisition tool, which means advisors who don’t are losing potential business.
In addition, planning-challenged advisors gather fewer assets than other groups, though their revenue-per-clients levels are not below their peers.
What Your Peers Are Reading
“Planning-challenged advisors may find it challenging to move from a transaction-focused business model to an advisory one,” says Sophie Schmitt, senior analyst with Aite Group and author of this report, in a press release.