Bernie Clark, leader of Schwab Advisor Services, asked independent
advisors today: “Are we driving change or being driven by it?” and urged
them to challenge themselves and resist the temptation to think “this is
working just fine” given the extraordinary growth and success that the
independent model has seen in the last decade.
Speaking to a group of 170 independent advisor clients for the firm’s
annual EXPLORE conference in Avon, Colorado, Clark encouraged attendees
to elevate their thinking and consider what’s next for their firms and
the industry. Clark also led a thought-provoking discussion with former
Federal Reserve Chair Janet L. Yellen, and the event included keynote
addresses from David Edelman, former special assistant to the President
for Economic and Technology Policy on the topic of big data, AI and the
Global Economy; Luke Williams, professor, NYU Stern School of Business
on disruptive leadership; and, Ian Bremmer, founder, Eurasia group on
geopolitics.
As advisors stare down a volatile market environment, concern among
clients is apparent. According to the Schwab Advisor Services
Independent Pulse released today, close to two thirds (64%) of
advisors report that their clients are concerned about ongoing market
volatility and, with each market swing, almost half of advisors (46%)
say clients become more concerned. More than 40% of advisors say it will
be difficult to achieve their clients’ investment goals in this market
environment, a sentiment not seen at this level since 2016.
However, market gyrations are not changing the risk tolerance related to
business bets advisors are willing to make. The majority say they are
continuing unabated to make technology improvements, hire and develop
talent, pursue M&A opportunities, and invest in marketing.
“When you have seen success and watched every type of market condition
play out over the years it can be easy to assume you have seen it all.
But industries are disrupted, markets change, and we need to continue to
get better and smarter. What got you where you are today is not
sufficient to get you where you want to be tomorrow,” Clark said.
Guiding Principles for Advisory Firm Success
At EXPLORE, Schwab unveiled its Guiding Principles for Advisory Firm
Success, a new framework that helps advisors address the
complexities of growing their firms. The principles are based on
Schwab’s hands-on consulting experience and a decade of Schwab’s
RIA Benchmarking data, which reveal factors that are actively
demonstrated in successful firms across the industry.
“Firms that experience incredible growth over time are coming back to
these guiding principles year after year,” said Clark. “These firms are
also the ones that are vigilant about the need to move from a ‘what is’
state to a ‘what could be’ state.”
The Guiding Principles are foundational to all Business
Consulting & Education programs, including advisor consulting
engagements.
Schwab advocates for advisors on Capitol Hill
As the EXPLORE conference got underway, a contingent of Schwab
representatives and independent advisors simultaneously travelled to the
nation’s capital for the Investment Adviser Association’s (IAA) 11th
Annual Advocacy Day. The group met with lawmakers to highlight important
issues that impact independent advisors and their clients, including the
Securities & Exchange Commission’s proposed investment advice rule.
According to Schwab’s Independent Pulse, the top two areas where
advisors believe regulation could benefit investors are fiduciary advice
(31%) and cybersecurity (24%), followed by cryptocurrencies (13%), elder
fraud (12%) and personal data usage (10%).
About the Schwab Advisor Services Independent Pulse
The Schwab Advisor Services Independent Pulse is an online
poll conducted for Schwab Advisor Services by Koski Research. Koski
Research is not affiliated with nor employed by Charles Schwab & Co.,
Inc. The study has a +/- 3.2 percentage point sampling error at the 95%
confidence level. All data are self-reported by study participants and
are not verified or validated. The study was conducted from April 26 to
May 8, 2018.
Detailed findings can be found at www.aboutschwab.com/press/research.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity. More information is
available at www.aboutschwab.com.
Follow us on Twitter,
Facebook,
YouTube
and LinkedIn.
Schwab maintains an active presence in Washington, D.C., by studying
policy issues and speaking out on behalf of independent advisors
regularly. For more on the IAA Advocacy Day activities, visit
@Schwab4RIAs on Twitter; to learn more about Schwab’s latest policy
views and advocacy initiatives, visit advisorservices.schwab.com.
Disclosures
Through its operating subsidiaries, The Charles Schwab Corporation
(NYSE: SCHW) provides a full range of securities brokerage, banking,
money management and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. More information is available at www.schwab.com
and www.aboutschwab.com.
Schwab Advisor Services™ serves independent investment advisors and
includes the custody, trading, and support of Schwab.
Independent investment advisors are not owned by, affiliated with or
supervised by Schwab.
For informational purposes only.
0618-8UYX
