Praxis Makes Perfect Archive
Praxis Makes Perfect is a thought-provoking blog centered around the different ways to think about the challenges Independent BD and RIA leadership face every day. Subscribers, from time to time, will have an opportunity to participate in research efforts to help provide directional guidance to how our industry can continue to evolve and thrive.
Innovation and Business Modeling are classic management activities used by long term successful companies of all sizes and most industries. All businesses today operate in an ever accelerating state of change, and those who plan to survive have a plan that includes innovation and business modeling as key tools to help discover the way forward.
In this installment of the 6 part series on mega trends we examine the regulatory and risk management environment and its impact on our industry. As we monitor and consider this we realize the pace of regulation change will not decrease or get easier, and clients will not get less litigious. Risk Management will expand to become an even more robust and costly requirement to be in the business.
Wealth Management teams in the Private Banks, Family offices and mega RIAs are winning the fight for the high net worth. Many others are seeking to develop some similar form of team approach to compete. Those seeking to emulate these models are discovering for the business model to work, the ownership structure and orientation to compensation are quite different than other models in order to generate reasonable profitability.
Broker Dealer consolidation is not going to slow down nor will the movement of advisors to the independent RIA model. Therefore even the biggest BDs must find ways to compete with the breakaway RIA movement and tell their value-add story better. It is no small feat for Advisors to start their own business, and the Clearing firms are doing an excellent job of paving the way.
Welcome to my latest work helping Cannon to forecast mega trends. Mega trends are complex because they are at the confluence of multiple variables each exerting pressure in different ways and at different times to coalesce into a broad trend that has enough momentum that it will be with us for a significant amount of time.