Pershing Recommends Four Strategies for Advisors Looking to Capitalize on Today's Industry Challenges and Build a Long-Lasting Business

Feb 13, 2013, 10:00 ET from BNY Mellon

JERSEY CITY, N.J., Feb. 13, 2013 /PRNewswire/ -- Pershing LLC, a BNY Mellon company, today announced the release of its latest study, Advisor of the Future II: Building a Business to Last. This independent study details how the advisory industry can respond to the challenges that many advisors face. Implementation of the four strategies outlined in the study can help firms generate income, earn a reputation for providing quality advice, providing superior client service and establish a sustainable business.

The impact of a slow recovery following the financial crisis of 2008 is still felt by many advisory firms. Left unaddressed, these firms will struggle to capture their share of the predicted $850 billion in new investible assets that could potentially be available each year for the next decade. But with the financial advice industry at a crossroads, forward-looking advisors have opportunities to increase their chances of long-term success.

"There are a number of challenges that can impact the long-term growth prospects for advisory firms. That's why  it is important to prioritize those that will have the greatest impact on their businesses in the near future," said Mark Tibergien, chief executive officer, Pershing Advisor Solutions "Firms need to focus on building a talent base of younger advisors to meet the anticipated client demands over the next decade.  They also need to be informed on the implications of compliance requirements and to be prepared to deal with competition by maintaining a superior value proposition using a cost-effective business model."

Pershing's study arms advisors with four solutions that can be implemented to address firm-specific troubles, including:

  1. Elevate the value of advice – To support business development and client retention efforts, advisory firms must acknowledge investors' changing advice consumption patterns, how the consumerization of technology impacts the relationship between investor and advisor and the growing sentiment that consumers can manage their own financial affairs.
  2. Reimagine the right talent – The lack of young, qualified advisors entering the industry requires greater focus on people management skills and long-term staffing solutions. Advisory firms must build an infrastructure for progressing individuals through the ranks and offering them a clear career path, as well as widen their focus to include new talent pools from NextGen and more diverse populations.
  3. Adopt a business-like approach to service delivery – Advisory firms must address the increasing competitive and regulatory pressures they face. Firms can improve productivity, control costs and realize scale by finding efficiencies in workflow through the use of technology and human capital.
  4. Create a culture of compliance – Regulatory requirements force advisory firms to put client interests first, embrace a culture of compliance and maintain a risk management infrastructure that connects the C-suite to service personnel. Adoption of a proactive approach to regulation will help to establish and maintain operating and servicing standards that are well above regulatory minimums.

"Our industry learned difficult lessons over the past four years. Advisory firms have shown resiliency in meeting demands of financial markets, consumers and regulators. Now it is time to adapt to the new normal and focus on plans to ensure continued success," added Tibergien.

Pershing collaborated with independent consultant FA Insight to prepare Advisor of the Future II: Building a Business to Last. This is the first of a three-part series focusing on the transformation advisors, broker-dealers and investors are undergoing and challenges they will face in the future.

To download the full study, please visit

Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent approximately 5.5 million active investor accounts. Located in 23 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Borse, Australian Stock Exchange, Irish Stock Exchange, London Stock Exchange and Toronto Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of December 31, 2012, BNY Mellon had $26.7 trillion in assets under custody and administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).  Additional information is available on, or follow us on Twitter @BNYMellon.