(Newswire.net — March 3, 2021) — The past year has been challenging for all of us, but in particular for financial advisors. It seemed like historical events were happening on a quarterly basis. And as financial advisors know, these types of events significantly impact the industry.
We often hear people refer to this period in time as being uncharted or unprecedented. Although it may feel like that for many, when we look back, we can see that these times aren’t so uncharted after all. The investment industry has been disrupted before.
Prior to May 1st, 1975, brokerage commissions were fixed no matter which firm you made a transaction through. It was a different time. Suddenly, on this day in 1975, the U.S. government mandated that those fixed commissions become unfixed, which, as you can imagine, turned the industry upside down and created a great deal of chaos and uncertainty. Prior to this mandate, everyone was paying the same commission for any given trade, and this change had a snowball effect, changing the industry significantly. When it became completely open, the industry introduced discounted commissions and financial planning. The mainstream wirehouse firms found themselves having to create products internally to make up for the revenues they had lost from agency commissions.
So why is this 46-year-old change relevant now? Well, it impacts the choices we make today as we experience changes that can feel equally as dislocating. Once again, just as it did in 1975, the focus of the industry has changed. With this understanding, Fragasso Financial Advisors has created an associated advisor model business offering to help financial advisors gain access to the resources they need to navigate through this trying time and into the next phase of their practice.
Fragasso’s Associated Advisor Model is a plug-and-play system designed for independent advisors or advisors breaking off from wirehouses or other institutions. It will allow these advisors to gain the same resources they would otherwise have in a very large firm while still maintaining or seeking their own independence. These superior resources and services are provided to help independent advisors grow their practice. This includes portfolio management, compliance, industry leading technology platforms, a codified client experience, and marketing. The beauty of this model is that independent advisors will have these resources at scale without having to invest the capital or recreate the infrastructure.
With the ever-changing financial landscape, advisors are spending increasing amounts of time navigating compliance and managing software systems leaving little time left over to grow their business. These time-consuming yet necessary tasks include:
- Sourcing, installing, and maintaining software systems
- Creating effective marketing campaigns and organizing client events
- Managing billing cycles, calculating fees and compliance procedures
- Researching, evaluating, and implementing investments, rebalancing portfolios, and buying/selling securities
- Networking and fostering referrals
As an advisor, you would better off utilizing the time spent on these tasks on more productive tasks. Advisors should instead be spending their time on vision and identifying programs to accomplish this vision. Advisors should have the time to spend on personal development, health, and family – not the time-consuming tasks listed above. Advisors should also be able to focus on client service and retention while developing relationships with prospective and new clients.
As an independent advisor, the less productive but necessary tasks should be farmed out so that you can spend time on the most productive aspects of growing your business. If you are a financial advisor and this sounds all too familiar, there is hope, thanks to Fragasso’s Associated Advisor Model.
Who is this Associated Advisor Model for?
This model is ideal for financial advisors looking to make a change. It is for those who want to work in an environment without pressures of proprietary product bias, arbitrary corporate decisions, and quotas. It can be for those who wish to join a collaborative environment but need a succession plan in order to confidently leave their current situation. Primarily, it’s for those who want to remain or become independent with the support of top-tier resources.
How does the Associated Advisor Model work?
There are options available as to how to structure your partnership. Independent advisors may choose to associate and gain access to the valuable resources previously listed – this is a key part of the model. However, advisors nearing retirement may want to sell, whether that is now or years from now, and would receive assistance with that sale to either another associated advisor or perhaps to someone within your own firm. It’s important to note that for those who sell and are plugged into the Associated Advisor Model are assured of quality implementation and have a greater chance of success of the practice. Additionally, with the Associate Advisor Model, your business succession planning is determined. This provides a great deal of reassurance for you as well as your clients. For example, if you are a middle-aged to pre-retirement advisor, your client will likely ask you what will happen to your accounts when you are no longer there. When you are plugged into the model, you could then reply that you have a succession plan in place so the quality of service they are now experiencing will continue, even after you are gone.
Further, you will experience a collaborative management team with a great organizational structure. A structure that is transparent and consistent. The firm is also partially employee-owned and moving towards majority employee ownership, so everyone you will interact with is an owner of the business. Lastly, there is a client-centric culture where every recommendation and decision is made with the clients’ best interest in mind.
Advisors looking for a change are invited to connect with Fragasso’s manager of HR and recruitment to confidentially discuss where you are, where you want to be, and how this model can help you get there. Founded in 1972, this model has taken his nearly 50 years of industry experience and provided a solution for those looking to spend less time on the less productive tasks and more time on the more productive tasks in order to support the growth of your business.
Investment advice offered by investment advisor representatives through Fragasso Financial Advisors, a registered investment advisor.