In a wide ranging interview with AdvisorOne on Thursday in advance of his presentation at MarketCounsel’s Member Summit 2012, Philip Palaveev, the Moss Adams and most recently Fusion Advisor Network alum, expanded on his announcement last week that he will start a consulting firm for “ensemble” practices. He also offered his insight on developing trends within the RIA industry.
When asked for the most prevalent trend this year, Palaveev (left) named “the process maturation of this industry.”
Palaveev compared the early stages of the industry to the Wild West.
“If you think about settlers on the Oregon Trail 200 years ago,” he began, “they went over the Cascade Mountains and down into the valley of what is today modern Seattle. They were able to simply stake a claim and the land was theirs. Try doing that today with all the roads and buildings and you’ll have a lot of upset people.”
The financial advice business operated in much the same manner, he continued. It was relatively easy for advisors to skate their claim with clients; no more.
“There are no more free clients,” Palaveev said. “I found it very telling yesterday when [Advizent’s] Charles Goldman said most of the competition for RIAs comes from other RIAs. It’s no longer the wirehouses.”