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All you need to know about RIA's

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					                           Financial
                           Advisor
                          Marketplace
                               Audio
                               Tel USA : 866 863 0570
                               Passcode: 110426




Contact:   Marcel Tsai marcel.tsai@laserfiche.com   Tim Welsh tim@nexus-strategy.com
 The Supply Chain for Financial Advice




  Capital       Financial         Financial       Investor
  Markets      Institution         Advisor
(Raw Goods)   (Packaging)       (Distribution)   (Consumer)


                         “Value added”
                            Financial Advisor Landscape
               320,000 financial advisors – 6 Channels
                                                                        13%
                                              17%


                                                    Insurance    Independent
                                                       B/D           RIA

                               6%            Bank
                                             B/D
                                          Regional
                             5%             B/D                     Independent
                                                                      B/D Reps

                                                 National Full                    35%
                                                 Service B/D



                                           24%
Source: Cerulli Associates, Nelson’s, SIA, Nexus Strategy, LLC
   The Supply Chain for Financial Advice –
Independent Registered Investment Advisors




  Capital     Custodian     Independent       Investor
  Markets                       RIA
(Raw Goods)   (Packaging)   (Distribution)   (Consumer)
   Independent Registered Investment Advisors (RIAs)
Primary target due to number of opportunities, fast growth, low adoption of
document management technology, Principals are business owners and make
their own technology purchase decisions

 Affiliation   # of firms    Business Models       Support       Industry
               / advisors                           Needs         Assoc-
                                                                  iations
Custodians      11,000      Independently        Custodian     FPA
                Firms       owned firms
(Schwab,                                         Investment    NAPFA
Fidelity,       45,000      Fee-based for        products
Pershing, TD   Advisors     managing
                                                               IAA
Ameritrade,                 portfolios
                                                 Technology
~100 others)
                            Financial planning                 CFA
                            and investment       Compliance    Institute
                            advice
                                                 Marketing
                            SEC registered
    Custodians
Total RIA Market Size – 11,000 firms, $1.5 trillion in AUM#
Independent RIAs work with a custodian to custody assets, place trades,
manage portfolios and send brokerage statements

                                                                              # of RIAs          Total AUM
                          Firm                                                affiliated*
Schwab Institutional                                                               5000          $550 billion
Fidelity RIA Group                                                                 3200          $225 billion

TD Ameritrade Institutional                                                        3000          $65 billion

Pershing Advisor Solutions                                                           450         $65 billion

Bear Stearns                                                                         400         $50 billion
FiServ                                                                               200         $15 billion
     #Source   – Cerulli, Moss Adams LLP, Nexus Strategy, LLC
     *Estimates due to RIAs using multiple custodians and end-clients using multiple advisors.
    Common Technology Platforms for RIAs
    System        Vendors                   What it does

CRM          Junxure             Keeps track of customer
             Goldmine            information, contact management
                                 – leading RIAs integrate CRM
                                 with Document management
Financial    Naviplan            Creates financial planning
Planning     Emoney              analyses and documents
             Advisor Guide Pro
Portfolio    Advent              Keeps track of portfolio changes,
Management   Portfolio Center    accounting, produces
                                 performance and other reports

Document     Laserfiche          Electronically stores documents
Management   Redtail             for search and retrieval, disaster
             Worldox             recovery
             Docupace
                   A Day in the Life of RIAs
    Activity                Technology Used           Paper Generated

• Establish new   • CRM                            • Advisory Agreement
relationships and • Custodian new account system   • Power of Attorney
open new          (www.schwabinstitutional.com)    • New account form
accounts                                           from Custodian
• Create           • Financial planning and        • Financial plans
investment and     investment management           • Asset Allocations
financial plans    programs (Naviplan,             • Investment Policy
                   Morningstar, Ibbotson)          statements
• Manage           • Advent / Portfoliocenter      • Trade blotters
portfolios         • Custodian web order entry     • Performance reports
• Work with       • Email                          • Tax, legal documents
Client’s CPA/Atty
• Client reviews   • Advent, Portfolio Center      • Statements
                   • Web publishing                • Performance reports
                            Financial Advisor Landscape
               320,000 financial advisors – 6 Channels
                                                                        13%
                                              17%


                                                    Insurance    Independent
                                                       B/D           RIA

                               6%            Bank
                                             B/D
                                          Regional
                             5%             B/D                     Independent
                                                                      B/D Reps

                                                 National Full                    35%
                                                 Service B/D



                                           24%
Source: Cerulli Associates, Nelson’s, SIA, Nexus Strategy, LLC
   The Supply Chain for Financial Advice
       – Independent Broker/Dealers




  Capital      Independent     Independent       Investor
  Markets     Broker/Dealers    B / D Reps

(Raw Goods)    (Packaging)     (Distribution)   (Consumer)
   Independent Contractor Broker/Dealer Reps
Secondary target due to Principals are business owners however, technology
purchase decisions and compliance processes need to be cleared by the
independent broker / dealer they work with, which increases the sales cycle.

   Affiliation     Number       Business Models       Support         Industry
                   of firms /                          Needs           Associ-
                   advisors                                            ations
Independent         26,000      Independently      Broker / Dealer   FPA
Broker / Dealers    Firms       owned firms
                                                   Investment        SoSFP
(LPL, Raymond      110,000      Fee / commission   products
James, AIG,        Advisors                                          IARFC
~100 others)                    Registered         Technology
                                Representatives                      IBF
                                                   Compliance
                                NASD (some SEC)                      MDR
                                registered         Marketing
                                                                     FSI
     Independent Broker / Dealers
     Total Market Size – 26,000 firms, $2.52 trillion in AUM

       Independent Broker Dealers                  # of Reps
       ING                                            8,880
       Ameriprise Financial Services                  7,571
       AIG Advisor Group                              7,322
       LPL Financial Services                         6,940
       Northwestern Mutual                            6,001
       HD Vest                                        5,200
       MML Investors Services                         4,709
       Raymond James Financial                        3,202
       Pacific Select Group                           2,754
       National Planning Holdings                     2,631
Source – Cerulli Associates, Nexus Strategy, LLC
                            Financial Advisor Landscape
               320,000 financial advisors – 6 Channels
                                                                        13%
                                              17%


                                                    Insurance    Independent
                                                       B/D           RIA

                               6%            Bank
                                             B/D
                                          Regional
                             5%             B/D                     Independent
                                                                      B/D Reps

                                                 National Full                    35%
                                                 Service B/D



                                           24%
Source: Cerulli Associates, Nelson’s, SIA, Nexus Strategy, LLC
   The Supply Chain for Financial Advice
   – National Broker/Dealer (wirehouses)




  Capital        National      Employee
  Markets     Broker/Dealer    Financial        Investor
               (Wirehouse)      Advisor
(Raw Goods)   (Packaging)     (Distribution)   (Consumer)
     National Broker / Dealers (Wirehouses) Reps
   Affiliation    Number     Business Models      Support      Industry
                  of firms                         Needs        Associ-
                                                                ations
Large financial     10       Employees         All support    IMCA
institutions       Firms                       provided in-
                             Registered        house          IBF
Merrill Lynch   75,000       Representatives
Smith Barney   Advisors                                       SIFMA
Morgan Stanley          Commission
UBS                     based
Wachovia
AG Edwards              Product sales
Edward Jones            focus

                             NASD registered
     National B/Ds (Wirehouses)
     Total Market Size – 50 firms, $5 trillion in AUM

       National Wirehouses                         # of Reps
       Merrill Lynch                                 15,160
       Citigroup (Smith Barney)                       11,026
       Wachovia                                      10,137
       Morgan Stanley                                10,000
       Edward Jones                                   9,733
       UBS                                            7,520
       A.G. Edwards                                   6,758
       Schwab                                         5,600
       Fidelity                                       4,052
       Ameriprise                                     3,225
Source – Cerulli Associates, Nexus Strategy, LLC
                            Financial Advisor Landscape
               320,000 financial advisors – 6 Channels
                                                                        13%
                                              17%


                                                    Insurance    Independent
                                                       B/D           RIA

                               6%            Bank
                                             B/D
                                          Regional
                             5%             B/D                     Independent
                                                                      B/D Reps

                                                 National Full                    35%
                                                 Service B/D



                                           24%
Source: Cerulli Associates, Nelson’s, SIA, Nexus Strategy, LLC
          Regional, Bank and Insurance B/D reps
   Affiliation   Number     Business Models      Support      Industry
                 of firms                         Needs        Associ-
                                                               ations
AXA               ~200      Employees         All support    FPA
                  firms                       provided in-
Wells Fargo                 Commission        house          SoSFP
                  90,000    based
B of A           Advisors                                    MDR
                            Registered
Janney                      Representatives                  IBF

Dain Rauscher               NASD registered


, ~200 others)              Mass affluent
                            clients
            Compliance – SEC –
        Investment Advisory Practices
                      The mission of the U.S. Securities and Exchange
                      Commission is to protect investors, maintain fair, orderly,
                      and efficient markets, and facilitate capital formation.

                      Investment Advisers Act of 1940
                      This law regulates investment advisers. With certain
                      exceptions, this Act requires that firms or sole
                      practitioners compensated for advising others about
                      securities investments must register with the SEC and
                      conform to regulations designed to protect investors.

                      What they do:
                      Audit RIAs periodically to ensure they are in compliance
                      with IAA of 1940, record retention requirements, client
                      disclosure, advertising and disaster recovery
Source: www.sec.gov
           Compliance – NASD –
   Sales Practices of B/Ds and their Reps
                       By law, every securities firm doing business
                       with the American public must register with
                       NASD.

                       Today, about 5,160 brokerage firms and more
                       than 663,535 stockbrokers and registered
                       representatives fall under our jurisdiction.

                       We register securities firms, write rules to
                       govern their behavior, examine them for
                       compliance and, when necessary, bring
                       enforcement actions against those who break
Source: www.nasd.com   those rules.
     Laserfiche Marketing Efforts
•   Advertising
•   Public Relations
•   White Papers
•   Brochures
•   Webinars (Advisors and VARs)
•   Direct Mail
•   Tradeshows
•   Technology Integrations
Advertising
Brochure & White Paper Series
 What Can You Do to Participate?
• Learn about the industry
  – Read the white papers
  – Attend / network at local FPA chapter meetings in
    your region
  – Subscribe to Investment News

• Leverage Laserfiche marketing campaigns
  – PR
  – Advertising
  – Direct Mail

• Promptly follow up on all leads
                Questions?
• VAR Website – Financial Services

• Laserfiche regional manager

• Marcel Tsai
  – marcel.tsai@laserfiche.com

• Tim Welsh
  – tim@nexus-strategy.com

				
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posted:7/3/2011
language:Italian
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