You bet they will. Here Cullen Roche explains why he quit Wall Street to become an independent advisor:
One of the reasons Roche transitioned to becoming an independent advisor was because of [the] perceived conflict of interest that exists at big Wall Street firms. “Those big firms are revenue-driven – they’re fee generators. They’re not able to do what’s in their clients’ best interest – a lot of the time the best interest of the client is to reduce fees,” he notes. According to Roche, the financial advisor model needs to change, with more and more advisors needing to act as independent consultants or fee-only advisors. “I think the conflict comes mostly from the big wirehouses: public companies that need to maximize profits – profits largely derived from generating fees from clients,” he concludes.
Read more at 10 Influential Blogs for Financial Advisors – PRAGMATIC CAPITALISM.
what is really surprising is that this is still news.
I so agree with the sentiments expressed above.
As a retired financial adviser, I still keep my hand in the research area, particularly as the Australian Stock Market still has good life in it.
I correspond with a list of ‘friends’ on suitable equity stocks that they need to consider for investment purposes. I always insist they they do their own followup research to see that the stock I suggest fits their own aspirations, and is it really the best use of their investment dollar. My emphasis is do they consider that this the best dollar use of their hard earned dollars?
I strongly push the margins one may achieve from buying an investment, versus the taxation you must pay the federal system for any income derived.
The investment market is so caught up in pushing volume, and associated fees attached to client advice, that the end result to the client is sacrifriced when taxation is also taken into consideration.
No wonder there is significant disillusionment out there in the marketplace with client returns being marginal when taxation is also included along with imposed fees structures.
Financial advisers as a body need to reapply themselves to the core professional training, that is in the clients best interests. I believe some in the corporate world have lost this perspective.
There is a real buzz in seeing a small ‘investor friend’ gaining $3000 profit on a $20,000 investment, then building profit from this small profit. Shouldn’t this be our prime objective, of turning small investors into tomorrows large asset owners?
WJD
Adelaide