May 30, 2017
- Director, iRebal Product Management, TD Ameritrade Institutional
It’s not uncommon for a firm to put the advisor at the core of its portfolio management and investment operations processes in a decentralized, autonomous role. Often, advisors start as the primary stakeholders for client relationships. This includes knowing all the particulars of the client’s situation, and taking responsibility for investment selection and timing of trading decisions.
As your RIA practice continues to grow, challenges will arise with this structure that may be difficult to overcome –lack of recordkeeping across advisors could increase compliance risk. Clients could perceive their relationship to be with their advisor and not with your firm–potentially eroding your firm’s enterprise value.