In this presentation on The Shift from Sales to Marketing, we identify how the 5 Macro Trends impacts Broker-Dealers, Platforms, Managed Account Providers, Custodians and Financial Advisors across channels

1. DEATH OF A SALESMAN:
THE VALUE OF INFORMATION IN LIEU
OF SALES
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Broker-Dealers, Platforms, & Financial Advisors
Executive Summary - 2018

2. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.2
“THE SHIFT TO MARKETING DOES NOT MEAN THE END OF SALES BUT
RATHER A GREATER EMPHASIS ON INFORMATION DRIVEN BY RISING
CONSUMER EMPOWERMENT AND CHOICE. THIS WILL REQUIRE A
BETTER UNDERSTANDING OF CLIENTS/INVESTORS, THE CUSTOMER
EXPERIENCE, AND THE NEEDS OF FINANCIAL ADVISORS.”
Source: GDC Research & CSG
THE SHIFT FROM SALES TO MARKETING
SALES
MARKETING
Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.

3. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.3
CONVERGING MACRO TRENDS ACCELERATING CHANGE
CHANGING
CONSUMER DYNAMICS
• Demographics:
Aging Boomers and
Digital-Oriented
Millennials
• Expanding
Underserved Advice
Gap
• Growing Choice for
Investment/Financial
Advice
• Demand for
Transparency
SHIFT TO LOW
COST SOLUTIONS
• New Normal Culture
of Low Cost
• Passive Solutions
Growing at the
Expense of Active
Management
• Less Margin to Fund
and Support
Distribution
FIDUCIARY
ENVIRONMENT
• Focus on Transparency
& Real/Perceived
Conflicts of Interest
• Reduction/Elimination
of 12b-1 Fees &
Traditional Sources of
Revenue-Sharing
• Pressure on Cost and
Fees for Investment
Management/Advice
• Increasing Compliance
Cost Impacting Budgets
INSTITUTIONALIZED
INVESTMENT SELECTION
• Investment Consultant
Approach to Manager
Selection by Advisors
and Platforms
• Advisors Considering
Outsourcing All or
components of Asset
Management
• Weakening Sales
Influence
ROBO/DIGITAL
ADVICE
• Embellishes the
commoditization of
asset management
• Provides Low Cost
and Accessible Advice
to Consumers
• Adoption Across All
Wealth and Age Tiers
• Increases Competitive
Pressure on Advisors
Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.

4. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
BROKER-DEALERS/PLATFORMS/CUSTODIANS
4

5. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
IMPACT AND IMPLICATIONS
5
BROKER-DEALERS/PLATFORMS/CUSTODIANS
SHRINKING
MARGINS
HEIGHTENED
COMPLIANCE &
CONFLICTS OF
INTEREST
LIMITED
RESOURCES FOR
SUPPORT
ATTRACTING &
RETAINING
PROFITABLE
ADVISORS

6. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.6
KEY CONSIDERATIONS FOR BROKER-DEALERS/
PLATFORMS/CUSTODIANS
RE-EVALUATING STRATEGIC PARTNERSHIPS WITH
ASSET MANAGERS/PRODUCT PROVIDERS
• Prioritize sponsorship efforts
• Rationalize B/D and platform sales agreements
• Reconsiderations of Broker-Dealer support (e.g. practice
management, other support services, etc.)
REWORKING HOME OFFICE/PLATFORM OPERATING
MODELS
• Reconstruct profitability models based on revenue sharing
• Shifting role of Product Gatekeeper/product selection process
• Identification of additional revenue sources/cost savings such as
increasing advisory AUM, outsourcing
back-office/tech, etc.
• Develop more internal proprietary investment management and
asset allocation solutions
REDEFINING ADVISOR ENGAGEMENT
• Identify and align support with various advisor segments
• Addition of a hybrid and RIA-only affiliation option
• Focus practice management efforts to increase advisor
growth and productivity
• Expand digital and remote support capabilities
Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.

7. 7
WHAT ARE YOUR ACTION STEPS?
Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
BROKER-DEALERS/PLATFORMS/CUSTODIANS
• Prioritize Sponsorship Efforts
• Rationalize Sales Agreements
• Reconstruct Profitability Models Based on Revenue Share Restructuring
• Shifting Role of Product Gatekeeper
• Identification of Additional Revenue Sources and Cost Savings
• Implement Advisor Segmentation
• Explore/Expand Affiliation Models (employee, hybrid, RIA, etc.)
• Focused Practice Management Efforts (including rationalization and
redeployment)
• Expand Digital and Remote Support Capabilities

8. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
FINANCIAL ADVISORS
8

9. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
Financial Advisors
Impact and Implications
FINANCIAL ADVISORS
16
IMPACT AND IMPLICATIONS
BECOMING
A FIDUCIARY
EMERGING
FEE PRESSURE
REDEFINING
VALUE WITH
CLIENTS
BROKER-DEALER/
PLATFORM
STABILITY

10. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
Financial Advisors
Action Steps
10
KEY CONSIDERATIONS FOR FINANCIAL ADVISORS
BUSINESS DEVELOPMENT
• Hybrid and RIA options
• Target clients (e.g. young emerging affluent,
Millennial, women, minorities, etc.)
• Business development staffing
• Practice acquisition
CLIENT VALUE PROPOSITION
• Shift to advice
• Expand investment management expertise
• Incorporate more passive and non-40 Act
investment solutions
• Adopt/integrate robo and digital capabilities
SCALING FOR GROWTH
• Rationalize practice management, continuing education,
and conference attendance
• Expand internal expertise; ensemble or team practice
• Leverage sources of expertise and support (e.g. Broker-
Dealer, Asset Managers, Insurers, Fin-Tech, etc.)
• Outsource components of asset management (e.g.
leveraging institutional money managers)

11. 11
WHAT ARE YOUR ACTION STEPS?
Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.
FINANCIAL ADVISORS
• Explore Hybrid and RIA Options
• Focus Client Development Efforts
• Shift to Advice/Planning
• Incorporate More Passive and Non 40 Act Investment Solutions
• Adoption/Integration of Robo and Digital Capabilities
• Implement Compensation Changes
• Rationalize Practice Management, Continuing Education and Conference
Attendance
• Expand Internal Expertise, Ensemble or Team Practice
• Leverage Sources of Expertise and Support (e.g. B/D, Asset Managers,
Insurer, Fintech, etc.)
• Outsource Components of Asset Management

12. Property of Collaborative Solutions Group (CSG), LLC and GDC Research. All rights reserved. 2018.12
COLLABORATIVE SOLUTIONS GROUP (CSG) www.consultCSG.com
CSG are the foremost thought leaders in the future of the financial services industry. Comprised of former C suite
executives, each with 25+ years of experience, we understand the history and current challenges of traditional
financial services firms. Being students of our profession, we know where the industry is going. Our expertise spans
the disciplines of Sales, Operations, Finance, Technology, Compliance, Marketing, Training, Relationship Management
and Project Management. Our team hails from top tier firms including broker dealers, asset managers, insurance
companies, registered investment advisors, banks and custody & clearing firms.
GDC RESEARCH www.GDCresearch.com
GDC Research provides applicable, actionable and customized consulting and research solutions for U.S. and
international financial service companies. Mr. Gallant is an industry expert with over 25 years of diverse experience
in market research, competitive analysis, tactical and strategic consulting, business development, market validation for
asset managers, insurance firms, broker-dealers, banks, clearing firms, and custodians, as well as various third-party
service and technology providers. GDC has consulted and published numerous reports and white papers on topics
such as investment product distribution/wholesaling, retirement income, advisory trends, digital/robo advice, wealth
management, financial advisor trends, etc. Mr. Gallant conducts numerous presentations, speeches and workshops for
client and industry conferences and is often quoted in industry trade publications.
ABOUT US
To receive a copy of the full presentations and to learn more about how GDC and CSG
can assist your organization, please contact:
Dennis Gallant, GDC Research Gretchen Wilson, Collaborative Solutions Group LLC
gallant@gdcresearch.com OR gwilson@consultCSG.com
508-397-9296 978-697-7574