Inefficient Operations Limit Revenue and Growth Potential of Advisors, According to Pershing Advisor Solutions and Moss Adams Study
Inadequate training and an over reliance on technology create inefficienciesJersey City, N.J., September 16, 2005 - Inefficient operations are creating a significant negative impact on advisory firms' revenue generating capacity and growth potential, according to a study released today by Pershing Advisor Solutions and Moss Adams LLP.
The study, entitled "Mission Possible: Finding the Optimal Operations Model for Your Advisory Practice," revealed that inefficient operations cost the typical investment advisory firm 8.3% of its total revenue, not including the cost associated with lost productivity of advisors.
Mission Possible identifies and examines numerous areas of operational inefficiency, such as data integration, communications and workflow. It also provides suggestions for how advisory firms can determine their own areas of weakness and recommendations for how to address and improve operational inefficiencies.
John Iachello, managing director at Pershing Advisor Solutions, said, "The development and management of efficient operations represents the next challenge for advisory firms, and it may become as important as other core investment management competencies. Advisory firms need to view operations as central to their firms' revenue generating ability and business success, not just as an expense item."
Mark Tibergien, principal with Moss Adams, said, "Too often advisors think they can solve operations problems with an all-encompassing technology application. In reality, it is a firm's inability to maximize its existing technology, combined with poorly trained staff and the necessity for principals to spend time on operations, that creates the bulk of most firms' inefficiencies."
The report, which was sponsored by Pershing Advisor Solutions and independently executed by Moss Adams, will be highlighted during FPA 2005, the annual conference of the Financial Planning Association®. For a copy of the executive summary, please email Barbara Gallo at bgallo@pershing.com.
Pershing Advisor Solutions is a leading provider of fee-based and advisory solutions to independent registered investment advisors (RIAs) and dually-registered advisors working in conjunction with Pershing LLC's introducing broker-dealer customers. As a service of Pershing LLC, Pershing Advisor Solutions leverages a nearly 65-year heritage of providing custodial services and outsourcing solutions to many of the world's leading financial services organizations. Through an innovative custody platform, Pershing Advisor Solutions delivers unmatched expertise and scalable and customizable solutions to help manage and grow fee-based businesses. Pershing Advisor Solutions offers RIAs a wide array of options for building their practices - tools for operational efficiency, a personalized service model, streamlined compliance management, and flexible connectivity alternatives - all in a noncompetitive environment. Through Pershing LLC, a member of BNY Securities Group and a subsidiary of The Bank of New York Company, Inc., Pershing Advisor Solutions provides access to one of the industry's most comprehensive bank and brokerage custody platforms.
The Bank of New York Company, Inc. (NYSE: BK - News) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
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