In Episode 42 of Rethink Financial Advice, H. Adam Holt, CFP and CEO of Asset-Map and Derek Notman, CFP and CEO of Conneqtor.co have a conversation with David Karr, the Chairman of Equitable Advisors, about the relationship between the home office and financial advisors in the field.
The conversation starts with a question plaguing many financial professionals, about whether the home office is aware of what is happening in the field. The hosts share a historical perspective that financial advisors have kept the home office at arm’s length. However, there has been a shift in recent years, and many financial advisors recognize that they and the home office play important roles, but that misalignment of perceived priorities can still exist leading to disengagement.
There is frank discussion about the disconnect between the value proposition provided by the home office of some professionals and what advisors in the field think they should get for their association and how it can lead to frustration and migration to independence. Karr suggests that home office executives need to understand that the expectations of clients have changed, and they want more than just investment portfolio management or once-a-year check-ins. Clients now want advisors to provide a comprehensive plan, educate them on alternatives and monitor their situation regularly.
According to Karr, the financial advice market’s demand for great advisors continues to increase, but the supply of advisors has remained flat to declining for some time. He believes that advisors who are connected with their clients hold a distinct advantage in the marketplace for professionals. However, he also warns that advisors need to be aware of the evolving expectations of clients, which are higher than ever before. While digital platforms can help deliver on these expectations, home office executives need to understand the changes and invest in the industry to support financial advisors in the field fully.
The episode highlights the importance of the home office’s relationship with financial advisors in the field and leading from an “advisor-first” mentality – recognizing the importance of the role to both the customer and firm. A better understanding and alignment of advisor roles can promote alignment, reduce turnover, and ultimately benefit clients. Financial advisors who are connected with their clients are in a strong position.
Listen to the full episode here. Rethink. The Financial Advisor Podcast – Episode 42: Advisor-First vs. Firm-First Mentality Featuring David Karr — Asset-Map.
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