Study Shows that Financial-Advice Firms See Record 2015 Earnings, Yet Slowest Growth Since Crisis

Posted on September 19th, 2016 at 9:32 AM
Study Shows that Financial-Advice Firms See Record 2015 Earnings, Yet Slowest Growth Since Crisis

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to an annual study by InvestmentNews research, independent financial-advice firms produced record earnings last year. However, the same study found that the growth rate for earnings is at its slowest rate since the financial crisis.

In 2015, the growth rate in revenue was at 8.2%, which was the slowest increase since the collapse of Lehman Brothers in 2009.  In fact, out of the 222 independent registered investment advisory firms and hybrid companies examined, 54 percent of firms said they missed their growth goals in 2015.

An analysis of the study suggested that while the record results are a positive sign for the firms, their growth is slowing as they face the rising regulatory costs due to the Labor Department's new fiduciary rule. The new fiduciary law, which will take effect next year, requires advisers who make recommendations for retirement accounts to act in the best interests of their clients.  Full implementation of the law is required by the start of 2018.

 The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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