![]() ![]() Ultimately, there are many positives about investment platforms-old and new-but advisors and companies should also be aware of potential negatives. It is also important to give any new providers time because there can always be teething problems in the early stages of a relationship. In particular, what processes do they have in place to help companies, and clients, reduce bureaucratic processes? What investor protections do they have?Ĭompanies can only really know which options are better for their needs by measuring revenue, profitability, client satisfaction and time saved from using different providers. Ultimately, the best way to decide which is the best fit for your advisory company is to ask the provider the right questions. For instance, a relatively big 20- or 30-year-old investment platform is more likely to be flexible and forward-thinking compared to a 200-year-old life assurance company, even with the same amount of AUM and investor protections. For these reasons, one might choose to deal with well-established firms that are just as big as traditional players but are more modern. Their systems are not always as developed, for example, so clients might not trust them as much in certain cases. ![]() However, it is true that newer, or alternative, investment platforms have their drawbacks as well. Ultimately, I've found that the bigger, more powerful and more traditional the investment provider, often, the less likely they are to be flexible with the advisory company. I've seen some firms revoke distribution agreements if firms weren't regulated a certain way, for example. Yet, in a changing world, I believe companies should be careful about which platforms they give business to. They also allow an advisor or advisory company to show their assets under management to potential buyers. They allow clients to see their assets in one place. There are clear benefits associated with dealing with investment platforms and life assurance companies. Yet, nontraditional and newer providers have become very popular within my client bank as well because I've observed some traditional investment providers have increasingly placed restrictions on alternative asset classes, which gives the advisor fewer investment choices. I have even encountered advisors who prefer to deal with providers in a specific jurisdiction. But, I've also seen many advisors who believe working with traditional and “big” investment platforms and providers is the only way to go. Since then, I have personally decided to work with providers that could do everything online or via very simple application forms. ![]()
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