Landscape of U.S. Financial Professionals & Firms, in terms of direct marketing

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The market of financial professionals in the U.S. is quite large, so you owe it to yourself to be able to identify specific markets within.

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  • Landscape of U.S. Financial Professionals & Firms, in terms of direct marketing

    1. 1. Marketing to Financial Professionals<br />
    2. 2. About the author<br />
    3. 3. Can you piece these together?<br />
    4. 4.
    5. 5. How do RIA’s and Advisors overlap?<br />
    6. 6.
    7. 7.
    8. 8.
    9. 9. Knowing WHO you’re after will let you know HOW MUCH of WHAT INFO is available.<br />
    10. 10. Knowing WHO you’re after will let you know HOW MUCH of WHAT INFO is available.<br />Will you have access to...<br /><ul><li> Business activity?</li></ul>How factual will it be? And what about...<br />
    11. 11. Knowing WHO you’re after will let you know HOW MUCH of WHAT INFO is available.<br />Will you have access to...<br /><ul><li> Business activity? </li></ul>How factual will it be? And what about...<br /><ul><li> Seniority?
    12. 12. Or title?
    13. 13. Or qualifications and designations?
    14. 14. And location, or info on satellite offices?</li></li></ul><li>Knowing WHO you’re after will let you know HOW MUCH of WHAT INFO is available.<br />Will you have access to...<br /><ul><li> Business activity?</li></ul>How factual will it be? And what about...<br /><ul><li> Seniority?
    15. 15. Or title?
    16. 16. Or qualifications and designations?
    17. 17. And location, or info on satellite offices?
    18. 18. Top-down or bottom-up?
    19. 19. Productivity/Worth/AUM?
    20. 20. Means of communication?</li></li></ul><li>Knowing WHO you’re after will let you know HOW MUCH of WHAT INFO is available.<br />Will you have access to...<br /><ul><li> Business activity?</li></ul>How factual will it be? And what about...<br /><ul><li> Seniority?
    21. 21. Or title?
    22. 22. Or qualifications and designations?
    23. 23. And location, or info on satellite offices?
    24. 24. Top-down or bottom-up?
    25. 25. Productivity/Worth/AUM?
    26. 26. Means of communication?</li></li></ul><li>Your foundation:<br />3 databases<br />
    27. 27.
    28. 28. a.k.a.<br />
    29. 29.
    30. 30.
    31. 31. Registered Rep, “Rep”<br />
    32. 32. Registered Rep, “Rep”<br />
    33. 33. Registered Rep, “Rep”<br />
    34. 34. Registered Rep, “Rep”<br />
    35. 35. Registered Rep, “Rep”<br />
    36. 36. Registered Rep, “Rep”<br />
    37. 37. Registered Rep, “Rep”<br />
    38. 38. Broker/Dealer, “BD”<br />
    39. 39. Broker/Dealer, “BD”<br />
    40. 40. Broker/Dealer, “BD”<br />
    41. 41. Broker/Dealer, “BD”<br />
    42. 42. Broker/Dealer, “BD”<br />
    43. 43. Broker/Dealer, “BD”<br />
    44. 44. Registered Investment Advisory, “RIA”<br />
    45. 45. Registered Investment Advisory, “RIA”<br />
    46. 46. Registered Investment Advisory, “RIA”<br />
    47. 47. Registered Investment Advisory, “RIA”<br />
    48. 48. Registered Investment Advisory, “RIA”<br />
    49. 49. Registered Investment Advisory, “RIA”<br />
    50. 50. A brief side note... FINRA and SEC overlap<br />The who, the what?<br />FINRA Financial Industry Regulatory Authority, Inc. www.finra.org<br />SEC Securities Exchange Commission www.sec.gov<br />
    51. 51. A brief side note... FINRA and SEC overlap<br />The who, the what?<br />FINRA Financial Industry Regulatory Authority, Inc. www.finra.org<br />SEC Securities Exchange Commission www.sec.gov<br />But that’s not very helpful, so remember this...<br />When it comes to financial professionals, ie individuals who formally handle transactions for investment products for others, FINRA vs SEC registration is a matter of compensation (from the transaction).<br />
    52. 52. FINRA and SEC overlap, II<br />
    53. 53. FINRA and SEC overlap, II<br />
    54. 54. FINRA and SEC overlap, II<br />
    55. 55. ... so which one(s) do you need?<br />
    56. 56. Common denominator: RIA’s<br /> All of these can actually be explained from the RIA point of view.<br />
    57. 57. Common denominator: RIA’s<br /> All of these can actually be explained from the RIA point of view.<br />Again, there are 27K RIA firms<br />
    58. 58. RIA firms in pictures, I<br />
    59. 59. These RIA firms are broken into 4 types<br />RIA firms in pictures, I<br />
    60. 60. RIA firms in pictures, I<br />
    61. 61. RIA firms in pictures, I<br />
    62. 62. RIA firms in pictures, I<br />
    63. 63. RIA firms in pictures, I<br />
    64. 64. RIA firms in pictures, I<br />
    65. 65. RIA firms in pictures, II<br />
    66. 66. Corporate RIA’s – 16%<br />RIA firms in pictures, II<br />
    67. 67. Corporate RIA’s – 16%<br />Though this is only 16% of firms, this contains the largest number of individual investment professionals. We’ll see this demonstrated in a moment through the angle of Advisors.<br />RIA firms in pictures, II<br />
    68. 68. Corporate RIA’s – 16%<br />Though this is only 16% of firms, this contains the largest number of individual investment professionals. We’ll see this demonstrated in a moment through the angle of Advisors.<br />Most BD firms register an RIA with the SEC, and this creates an RIA firm, which is still a BD. All major investment firms do this: Merrill Lynch, UBS, LPL, Goldman Sachs, AIG, ING...<br />RIA firms in pictures, II<br />
    69. 69. Corporate RIA’s – 16%<br />Though this is only 16% of firms, this contains the largest number of individual investment professionals. We’ll see this demonstrated in a moment through the angle of Advisors.<br />Most BD firms register an RIA with the SEC, and this creates an RIA firm, which is still a BD. All major investment firms do this: Merrill Lynch, UBS, LPL, Goldman Sachs, AIG, ING...<br />Note: Officer listings are generally not the same for a firm’s BD and RIA.<br />RIA firms in pictures, II<br />
    70. 70. RIA firms in pictures, III<br />
    71. 71. Portfolio managers – 35%<br />RIA firms in pictures, III<br />
    72. 72. Portfolio managers – 35%<br />Investment services that produce financial vehicles from pooled investments in a no-load capacity – SMA’s, REIT’s, funds and trusts.<br />RIA firms in pictures, III<br />
    73. 73. RIA firms in pictures, IV<br />
    74. 74. Hybrid advisors – 14%<br />RIA firms in pictures, IV<br />
    75. 75. Hybrid advisors – 14%a.k.a. “runaway brokers”<br />RIA firms in pictures, IV<br />
    76. 76. Hybrid advisors – 14%a.k.a. “runaway brokers”<br />An individual Rep, ie a licensed professional registered with a FINRA-registered firm, who has opted to open their own RIA firm. <br />RIA firms in pictures, IV<br />
    77. 77. Hybrid advisors – 14%a.k.a. “runaway brokers”<br />An individual Rep, ie a licensed professional registered with a FINRA-registered firm, who has opted to open their own RIA firm. <br />Their FINRA affiliation preserves their access to commission on transactional products, notably stocks & bonds.<br />RIA firms in pictures, IV<br />
    78. 78. RIA firms in pictures, V<br />
    79. 79. Pure fee-based advisors – 35%<br />RIA firms in pictures, V<br />
    80. 80. Pure fee-based advisors – 35%<br />Advisors with no broker/dealer affiliation for commission for the sale of the investment product, so advisors whose compensation is purely fee-based.<br />RIA firms in pictures, V<br />
    81. 81. Pure fee-based advisors – 35%<br />Advisors with no broker/dealer affiliation for commission for the sale of the investment product, so advisors whose compensation is purely fee-based.<br />However, this does not prevent possible compensation from the said investment product to the advisor or their firm as unaffiliated with any transaction, sometimes referred to as a “referral fee.”<br />RIA firms in pictures, V<br />
    82. 82. This word advisor keeps popping up<br />So let’s define because this word is used loosely...<br />
    83. 83. This word advisor keeps popping up<br />So let’s define because this word is used loosely...<br /><ul><li> qualified to dispense their advice on an investment product
    84. 84. because... proper SEC registration...</li></li></ul><li>This word advisor keeps popping up<br />So let’s define because this word is used loosely...<br /><ul><li> qualified to dispense their advice on an investment product
    85. 85. because... proper SEC registration...</li></ul>AND/OR<br /><ul><li> hold the series exams 65 or 66 (denoted ‘s65’ or ‘s66’)</li></li></ul><li>This word advisor keeps popping up<br />So let’s define because this word is used loosely...<br /><ul><li> qualified to dispense their advice on an investment product
    86. 86. because... proper SEC registration...</li></ul>AND/OR<br /><ul><li> hold the series exams 65 or 66 (denoted ‘s65’ or ‘s66’)</li></ul>FYI: Advisor activity is regulated as a measure of investor protection which is intended to remove bias created by a potential commission, and why it is a matter of compensation.<br />
    87. 87. Altogether there are about 180K Advisors<br />Fact Check: http://www.nasaa.org<br />‘Industry & Regulatory Resources’, then ‘CRD & IARD’<br />
    88. 88. and Advisors can be seen from 2 angles<br />No. 1)<br />No. 2)<br />
    89. 89. and Advisors can be seen from 2 angles<br />No. 1) As we just saw within RIA firms: Hybrid advisors & Pure fee-based advisors<br />- Collectively referred to as Independent RIA’s<br />No. 2)<br />
    90. 90. and Advisors can be seen from 2 angles<br />No. 1) As we just saw within RIA firms: Hybrid advisors & Pure fee-based advisors<br />- collectively referred to as Independent RIA’s<br />No. 2) As Reps within Corporate RIA’s (BD’s) that hold their s65/66<br />- which happens to be approx one third of all Reps<br />
    91. 91. and Advisors can be seen from 2 angles<br />No. 1) As we just saw within RIA firms: Hybrid advisors & Pure fee-based advisors<br />- collectively referred to as Independent RIA’s<br />No. 2) As Reps within Corporate RIA’s (BD’s) that hold their s65/66<br />- which happens to be approx one third of all Reps<br />... in figure, starting with the latter<br />
    92. 92. Advisors in pictures, I<br />
    93. 93. Advisors in pictures, I<br />
    94. 94. Advisors fall under two categories<br />Advisors in pictures, I<br />
    95. 95. either a Rep of BD firms with s65/66 (in green)<br />Advisors in pictures, I<br />
    96. 96. either a Rep of BD firms with s65/66 (in green)<br /> which represents a striking majority of all Advisors, to the tune of 93%.<br />Advisors in pictures, I<br />
    97. 97. Advisors in pictures, II<br />
    98. 98. or as Advisors with Own RIA<br />Advisors in pictures, II<br />
    99. 99. or as Advisors with Own RIA<br />The remaining 7% are Independent RIA’s who have opened their own RIA firm.<br />Advisors in pictures, II<br />
    100. 100. or as Advisors with Own RIA<br />The remaining 7% are Independent RIA’s who have opened their own RIA firm.<br />Advisors in pictures, II<br />
    101. 101. Appeal<br /> Independent RIA’s<br /> Reps of BD’s with s65/66<br />
    102. 102. Appeal<br /> Independent RIA’s<br /> Reps of BD’s with s65/66<br />Professionals like to contact this market as it’s 10-fold-plus the size. A large portion of these can generally make his/her own decisions on services used or products represented, but corporate approval will likely be required beforehand.<br />
    103. 103. Appeal<br /> Independent RIA’s<br />Professionals like to contact this group because these investment professionals, having a proprietary RIA, can generally make their own decision on services used or products represented.<br /> Reps of BD’s with s65/66<br />Professionals like to contact this market as it’s 10-fold-plus the size. A large portion of these can generally make his/her own decisions on services used or products represented, but corporate approval will likely be required beforehand.<br />
    104. 104. Appeal<br /> Independent RIA’s (15K professionals)<br />Professionals like to contact this group because these investment professionals, having a proprietary RIA, can generally make their own decision on services used or products represented.<br /> Reps of BD’s with s65/66 (165K professionals)<br />Professionals like to contact this market as it’s 10-fold-plus the size. A large portion of these can generally make his/her own decisions on services used or products represented, but corporate approval will likely be required beforehand.<br />
    105. 105. Available data points<br />
    106. 106. Available data points<br />* Available depending on source<br />** Available depending on source, and only as an estimation if available<br />
    107. 107. Available data points<br />* Available depending on source<br />** Available depending on source, and only as an estimation if available<br />
    108. 108. Available data points<br />* Available depending on source<br />** Available depending on source, and only as an estimation if available<br />
    109. 109. Available data points<br />* Available depending on source<br />** Available depending on source, and only as an estimation if available<br />
    110. 110. Available data points<br />* Available depending on source<br />** Available depending on source, and only as an estimation if available<br />
    111. 111. Get the right market<br />This info should help you know what data you can expect to access<br />
    112. 112. Get the right market<br />This info should help you know what data you can expect to access<br />Ideally, your list broker or database source should be able to translate your goals into filters.<br />
    113. 113. Get the right market<br />This info should help you know what data you can expect to access<br />Ideally, your list broker or database source should be able to translate your goals into filters.<br />Targeting more = spending less<br />
    114. 114. Get the right market<br />This info should help you know what data you can expect to access<br />Ideally, your list broker or database source should be able to translate your goals into filters.<br />Targeting more = spending less...<br />Less time. Less money. Less opportunity cost.<br />
    115. 115. Author: Duncan Colin Campbell<br />US cell 281.617.2708 / Canada cell 514.928.3865<br />DCCampbell@QualifiedMedia.com<br />thank you<br /><ul><li> For your time and interest
    116. 116. For your comments
    117. 117. For any form of feedback
    118. 118. For referrals</li></ul>Please contact for any questions or to include this in your presentation – in portion or in whole.<br />

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