Nobody wants to get a bill for services they didn’t need or purchase. But that’s what’s happening – unwittingly – to advisors as the vendors that supply them expand their service offerings.
With recent regulatory activity, such as the pending DOL fiduciary standard, riling up compliance departments and shifting consumer preferences to lower-cost advice models, players in the advisor-to-client supply chain are feeling the squeeze. In response, advisor-service firms are expanding into non-core functions – expanding their value in an effort to capture a larger slice of the pie.
Many firms are incorporating these extra services, such as asset allocation and data aggregation, into their existing advisor offering. That’s all well and good – but, as a result, advisors could be paying for the same function twice, or even more times over, because they now exist within a bundled pricing model from separate third-party firms.
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Why Firms Pay for Services They Don’t Need
By Matt Lynch, Managing Partner, Strategy & Resources, LLC., March 22, 2016