Displaying items by tag: client

Edward Jones has launched a new private client service, Edward Jones Generations, targeting individuals with at least $10 million in investable assets. This strategic shift marks a significant expansion beyond the firm’s traditional Main Street clientele, positioning it to compete more directly with established wealth management giants like Morgan Stanley and UBS. 

The new offering delivers a suite of high-touch services, including access to alternative investments, trust and estate planning, business succession strategies, and collaborative tax and legal advising with partners like EY and Husch Blackwell. 

In addition to personalized planning, clients will benefit from dedicated teams and access to lending, cash management, and sophisticated portfolio construction support. The move aligns with Edward Jones’s broader strategy to evolve its business model, including the promotion of team-based advising and a strong emphasis on advanced certifications like the CFP designation. 

Finsum: Be sure to think about how your firm can support the types of clients you are seeking.

Marketing is a non-negotiable for any practice that is serious about sustaining consistent growth. While there are many aspects to consider, an overriding factor is determining the right budget. Some of the variables that will impact this decision are the size of the firm, the marketing strategy, and the channels that will be targeted. 

It can be helpful to study the marketing strategies and budgets of other advisors. According to a study conducted by Broadridge, the average advisor spent $17,400 on marketing in 2022. The average spend for an RIA was $27,800 vs $9,700 for independent broker-dealers. In terms of impact, the study found that firms were onboarding an average of 23 clients per year with the cost of acquisition at $743 per client. However, there was significant variance as some reported spending under $250 per client, while others reported figures above $2,000 per client. The survey also showed that 30% of advisors plan to increase their marketing budget, while only 2% of advisors plan to reduce spending. 

The general rule, for more established advisors, is that the marketing budget should be between 1% and 10% of annual revenue. Marketing is also an iterative process, so it’s important to evaluate the effectiveness of spending and various tactics in terms of desired metrics such as generating leads, finding prospects, or brand building. 

Finsum: Marketing is key to sustainable growth for advisors. Determining a marketing budget is the first step. Here are the most important factors to consider, and how other advisors are approaching the matter.

FINRA has issued its first disciplinary action related to Reg BI. The regulatory authority levied a $5,000 fine and a six-month suspension on a broker for allegedly causing their client to pay tens of thousands in commissions on an account of less than $30,000. It is the first time FINRA has taken action against a broker for alleged violations of the SEC's Reg-BI fiduciary rule. Charles V. Malico, who worked for Network 1 Financial Securities at the time of the violation, accepted and consented to the agency’s findings without admission or denial. According to findings, between July 2020 and November 2021, Malico violated Reg BI when he recommended a series of trades in the account of a retail client that was considered excessive based on the customer’s investment profile. Therefore, his actions were not in the client’s best interest. Making matters worse, Malico allegedly recommended that his client buy and sell a security, only to repurchase the same security days or weeks later. FINRA was made aware of the broker’s conduct through a review of a customer-initiated arbitration. The arbitration, which is still pending, stemmed from a Dec. 6, 2021 customer complaint that alleged negligence, breach of fiduciary duty, and negligent supervision. 

Finsum: In its first disciplinary action related to Reg BI, FINRA levied a $5,000 fine and a six-month suspension on a broker for not acting in the best interests of his client.