Recent LIMRA research shows that when young advisors seek support from financial service organizations the top request usually involves obtaining leads and references to pursue new clients.
A closer look at the research reveals 1 in 4 also said learning to run a business was among their top challenges. While this finding might be expected for those just starting their careers, demand for practice management support is increasing beyond the young professional
In 2014, LIMRA surveyed independent financial professionals (IFPs) and found that 1 in 4 advisors are still establishing their practice. Yet 67 percent of all IFPs surveyed said business support is a critical factor to their success. Findings from the survey suggested that when companies work with IFPs they might consider offering practice management services as part of their support.
There are several reasons to suggest why practice management support is in more demand now than in the past. Advisors today must be able to understand and explain complicated financial products to an increasingly complex client base.
Advisors are also expected to understand and deliver the right solutions for clients of different generations and culturally diverse backgrounds, each of which have unique needs Wholesaling is a key strategy that can provide the support advisors need to grow their practice.
Advisors today also express concern over how the regulatory and compliance environment will affect them. In one LIMRA survey, more than a third of independent and career advisors perceive a negative impact on their business if a uniform fiduciary standard is implemented.
Advisors’ comments on how it might impact their practice included concerns about increasing paperwork, creating additional compliance costs, and offering little to no benefit to clients.