Regulatory interference is viewed as the most significant business risk among independent financial advisors, according to a recent Financial Services Institute survey.
According to the FSI’s 2015 Financial Performance Benchmarking Survey, there is overwhelming agreement that potential regulatory actions rank among the top concerns by nearly a 2-to-1 margin.
The survey found that 50% of participants view “regulatory interference” as the most significant business risk compared to the 28% who view “significant market decline” as a risk.
A lesser concern is the RIA pure-play business model (14% think it’s a significant business risk). Some are worried about clients or advisors not being fully aware of interest rate risk or the potential for a bond bubble pop (8% said this was a significant business risk).
The survey, conducted in partnership with independent consulting firm Strategy & Resources LLC, asked CEOs of participating FSI member firms about their financial performance and their views on a variety of industry trends.
FSI comprises more than 100 independent financial services firm members and their more than 160,000 affiliated financial advisors.
Among the survey’s results are several findings of “particular interest,” says FSI President and CEO Dale Brown.