Broker vs Advisor

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Jul 21, 2008 9:31 am

Hello Folks,

 
I am doing a research paper on the Technology needs for a DUAL REGISTERED  RR .
 
I would be grateful if you could share some thoughts on the same. I understand that Advisor definetly needs the below
 
1.Financial Planning Software  (Morning Star, Financial Profiles)
2. Asset Allocation Software (Morning Star, Financial Profiles, MV Optimiser)
3. Data & Research Services (MS, S&P, Yahoo, Bloomberg)
4. Portfolio Management Software (Centerpiece, Advent)
5. Contact Management Software
 
Could you please let me know what would a Broker Dealer need for his day to day work and  how will that change into the future
 
 
 
 
Jul 21, 2008 10:18 am

The most important technology need is the telephone. Most people are afraid to use it. 

Jul 21, 2008 10:25 am

John, the term "financial advisor" has no meaning.  When you say dual registered, I will assume that you mean someone who is both an RR and an IAR (or has their own RIA).


When one is dually registered, there broker/dealer can exert a great deal of control over them.   Your list of what the advisor (IAR) needs to have is incorrect.  The correct answer is that the IAR needs to have whatever his broker/dealer tells him he needs to have.


Bobby is correct.  The main thing that he needs is a telephone and/or a good pair of shoes.

Jul 21, 2008 10:42 am

Thanks Anonymous.

 
Yes, I meant an RIA. Is this list not correct then ? What is missing ?  Pls explicate.
Jul 21, 2008 11:00 am

There is no law that says you need those things.  You only need those things if your broker dealer says that you need them.  Let me give you an example.  Let's say that I have an RIA and the only thing that I do is give general advice on college planning alternatives.  Could I do it without having any of those 5 things that you listed?  The answer is "yes"...unless my B/D says "no".

Jul 21, 2008 11:02 am

John, there are two separate things.

 
1) What does an RIA (IAR) need to do his job in an adequate manner?
2) If one is dually registered, what does the B/D say is necessary?
 
These things can be the same or very different.  The first very much is dependent on what exactly the RIA (IAR) is doing.
Jul 21, 2008 11:10 am
John Nash:

Hello Folks,

 
I am doing a research paper on the Technology needs for a DUAL REGISTERED  RR .
 
I would be grateful if you could share some thoughts on the same. I understand that Advisor definetly needs the below
 
1.Financial Planning Software  (Morning Star, Financial Profiles)
2. Asset Allocation Software (Morning Star, Financial Profiles, MV Optimiser)
3. Data & Research Services (MS, S&P, Yahoo, Bloomberg)
4. Portfolio Management Software (Centerpiece, Advent)
5. Contact Management Software
  Could you please let me know what would a Broker Dealer need for his day to day work and  how will that change into the future 
 



John,



You're going to need to be much more precise in what you are asking for.  Anon has helped raise the issue of an IAR and his lack of
control over technology tools, relative to his b/d.



Even if you pose the question for an independent RIA, I'd have to ask what do you really mean by technology "needs?"   There is such a wide range of variation in the exact type of service one firm provides compared to another that what one finds essential, another would never, ever use. 

And I won't even get into trying to answer how something so vague might change in the future.  That's just speculation, and most here aren't much interested in speculation.

What in the world is this paper you are writing to be used for?

Jul 21, 2008 9:27 pm
Hobby Bull:

The most important technology need is the telephone. Most people are afraid to use it. 

I disagree it is legal pad and pencil....
Jul 21, 2008 10:34 pm
noggin:
Hobby Bull:

The most important technology need is the telephone. Most people are afraid to use it. 

I disagree it is legal pad and pencil....



I agree with your disagreement with me.

Jul 23, 2008 7:50 am

"There is such a wide range of variation in the exact type of service one firm provides compared to another that what one finds essential, another would never, ever use. "

 
Lets not worry about if he uses it or not. If one uses it and another doesnt use, thats fine.
 
I am just trying to think generic and want to know what softwares/technology could an IAR possibly use.
 
 
Jul 23, 2008 8:35 am

John, that is very different from what you asked in your original question. 


You are going to think that I'm being sarcastic in the answer, but I'm not.  The best tools to get in front of the prospect are a phone and a good pair of shoes.  The best skills to help a client are pencil and paper and great sales skills.


I'm not belittling technology, but it's best used behind the scenes and when necessary as a little support for the client.

Jul 27, 2008 12:27 am
Ferris Bueller:
Hobby Bull:
noggin:
Hobby Bull:

The most important technology need is the telephone. Most people are afraid to use it. 

I disagree it is legal pad and pencil....



I agree with your disagreement with me.

 
I disagree with your agreement of his disagreement.
 
The phone is still the most important.  Without it we would be walking door to door.
How would you know what number to dial without writing it down.....
Aug 17, 2008 3:29 pm

Phone~Pen/Paper~Phonebook/Calling list should all be considered equally important  Neither can survive without the other

Aug 18, 2008 9:12 am
John Nash:

Hello Folks,

 
I am doing a research paper on the Technology needs for a DUAL REGISTERED  RR .
 
I would be grateful if you could share some thoughts on the same. I understand that Advisor definetly needs the below
 
1.Financial Planning Software  (Morning Star, Financial Profiles)
2. Asset Allocation Software (Morning Star, Financial Profiles, MV Optimiser)
3. Data & Research Services (MS, S&P, Yahoo, Bloomberg)
4. Portfolio Management Software (Centerpiece, Advent)
5. Contact Management Software
 
Could you please let me know what would a Broker Dealer need for his day to day work and  how will that change into the future
 
 
 
John,
 
Sorry, they are sort of d1cking you around.  Your list is a good one.  You are thinking about someone that has a client base they are trying to manage.  These guys are thinking about prospecting.
 
The problem is, this stuff comes in all shapes and sizes.  For example, you  MUST have a CMS system, but for some people it is as remedial as index cards (which is how the industry traditionally tracked client contacts).  You must have some sort of portfolio management software, and it can't really be manual.  You can get away without having research, as there are enough resources online to use if you needed to (but then I guess this still means you need it).  FP software and AA software are not critical, as most of us can do it in our heads.  However, if your focus is planning, you will look pretty silly without presenting reports to clients.  Many plain vanilla RReps don't use either of these.
 
Don't forget communication software (E-mail).  Not critical, but pretty important.  Also, for RReps, you are going to have some sort of trade entry system.  RIA work doesn't necessarily need this if you are not custodian of funds (just providing advice).
 
Finally, remember that many of these platforms are integrated among the software that your B/D may provide (or at least linked in some way).  For example, at Edward Jones, all of those platforms are integrated into our desktop, though most pieces are 3rd party software (i.e. Morningstar, Sungard (FP & AA), Outlook, S&P, etc.).
Mar 24, 2009 6:24 pm
John Nash:

"There is such a wide range of variation in the exact type of service one firm provides compared to another that what one finds essential, another would never, ever use. "

 
Lets not worry about if he uses it or not. If one uses it and another doesnt use, thats fine.
 
I am just trying to think generic and want to know what softwares/technology could an IAR possibly use.
 
 



John:

I actually think your list is good, what works for one advisor does not work for another.  For instance I often question a CRM tool for the small RIA.  I am not sure what it really accomplishes.  I find most are fine with Outlook once I show them how to use it.  Most really do not know how to use it.

The one item you are missing is Compliance Tools.  There aren't many out there for the smaller advisor, but it is something that they need.  I am building a "Employee Trading System" and Email monitoring system for the small RIA.  There are very large systems out there, but very expensive.

ash
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