- How IBD advisors build client portfolios and the changing nature of their use of diverse types of investment vehicles
- The receptivity of Independent BD advisors to wholesalers and the wholesaling approaches these advisors find most useful
- The relevance of insurance and annuity solutions to Independent BD advisors and how providers can more effectively deliver support for these products
- The forms of value add and practice management assistance that are most useful and impactful in influencing IBD advisors
- How product providers and distributors can establish relationships and build business with Independent BD advisors who have not previously used products or solutions from a firm
Key Topic Areas
How Independent BD Advisors Manage Client Portfolios
- What sources influence investment decision-making and how are model portfolios used to guide money management?
- How are active and passive investments leveraged in portfolios and what are the main challenges to investment management?
- How are IBD advisors leveraging ESG strategies including the key reasons for using these investments?
Independent BD Advisors Use of Annuities and Insurance
- How engaged are IBD advisors in offering insurance and annuities and what challenges must they overcome?
- What sources are relied on for support and what characterizes the providers IBD advisors prefer to use?
- What enhancements and types of support are most important to increase use of annuities and insurance solutions?
Initiating Relationships with Independent BD Advisors
- How do IBD advisors typically identify new providers and what are the most important methods of outreach to these advisors?
- Which types of support from providers are most valued by IBD advisors in initiating relationships with providers?
- What are the typical circumstances prompting the consideration of providers which IBD advisors have not previously used?
Wholesalers Engaging with Independent BD Advisors
- What do IBD advisors perceive wholesalers do best and which methods of outreach are most common?
- To what extent are technology-based approaches replacing traditional in-person wholesaling?
- What characteristics define the most useful wholesaling and what forms are most likely to drive action of IBD advisors?
How Independent BD Advisors Use Value Add and Practice Management Support
- What sources are relied on most for support and how do IBD advisors learn about these resources?
- What changes can improve the usefulness of value add capabilities including the topic areas of most importance?
- What characteristics define the most useful support and what capabilities are most valued given the coronavirus pandemic?
To Order the Report
The study is available in PDF format for the subscription price of $4,950 which includes a discussion of key findings. To order the complete 76-page, 53 exhibit report or for more information, please contact: Howard Schneider, 978-590-7290 or email firstname.lastname@example.org
Introduction and Methodology
Independent broker dealer advisors are a critical audience for asset managers, insurance companies, custodians, and other service providers that rely on intermediary distribution. These entrepreneurial advisors comprise the largest proportion of active retail practitioners and represent a growing share of total industry assets. Independent BD advisors have special characteristics and needs that make them receptive to engaging with product providers such as mutual funds and annuity firms. Despite recent enhancements at large independent broker dealers, many Independent BD advisors lag their wirehouse counterparts in access to technology, tools, and home office support. Compared to RIAs, most Independent BD advisors focus on mass affluent clients rather than on high net worth or ultra-high net worth relationships. In past studies, Practical Perspectives has highlighted many of the different viewpoints and perspectives of Independent BD advisors as part of our proprietary research covering a range of topics relevant and critical to strategic and marketing/sales subjects. In this new report, we build on prior studies we have conducted to share a detailed examination of advisors at independent broker dealers such as LPL Financial, Cetera, Ameriprise, Raymond James, Commonwealth, and a host of other firms. Our goal is to provide product providers and distributors with insights and implications related to several strategic and tactical questions involving these advisors including:
- How can providers align with key trends in how Independent BD advisors manage portfolios, including their use of model portfolios as well as active and passive investments?
- What are the most effective ways providers can establish relationships with Independent BD advisors?
- How do Independent BD advisors leverage insurance and annuity solutions for their clients and how can providers better serve the distinct needs of these advisors?
- How do Independent BD advisors use value add and practice management support from key sources and how are their needs for support, and resources changing, especially considering the coronavirus situation?
- How should wholesalers engage with Independent BD advisors including preferences for interaction and how these advisors define the most useful wholesaling support?
Notably, many advisors in the Independent broker dealer channel are dually registered and do both fee-based and brokerage business, as appropriate. Virtually all Independent BD advisors are also insurance licensed and assist clients with life, long-term care, or annuity needs arisin7g from risk protection or income planning. In reviewing this report, note that all data presented is sourced through proprietary research published by Practical Perspectives in the past 18 months.