May 2015

Financial Advisor IQ – Top Risks Faced By Solo-Advisor Practices

Greg Franks is managing partner and president of Snowden Lane Partners.


Top Risks Faced By Solo-Advisor Practices

Despite the attention given to the fiduciary standard and robo-advisors, there remains another trend that has not been as widely covered but is changing wealth management: the demise of sole-practitioner advisors.

The catalysts for their demise have slowly built up over the last 30 years and did not happen overnight, but for a variety of reasons solo practitioners have been falling out of favor for some time now. As a result, those who remain are putting themselves and their clients at several major risks. Below are some of the main challenges that will further exacerbate the downward trajectory of this business model.

A team-based approach isn’t a good fit for every advisor, and there are many scenarios where being a solo practitioner makes sense for an advisor and her clients. But for advisors looking to grow their business, embracing a team-based approach can add significant value and put them in a better position to strengthen their relationships with current clients while helping attract new ones.

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