FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Here’s the new “must-have” for attracting quality executives (Financial Planning)
For advisory firms looking to attract a “top-tier wealth management executive,” offering equity is “no longer optional — it’s mandatory,” writes Charles Paikert.
“In this market, equity is now table stakes if you want to hire the best and the brightest executives,” Kathy Freeman, president of an eponymous executive research firm, told Financial Planning. “In the past, top advisors considering changing firms would take less cash in exchange for equity. Those days are long gone. Equity participation is now the starting point for any offer.”
These are the best ways to develop new advisors (InvestmentNews)
There are four things to do in order to efficiently develop new talent at an advisor’s firm, writes Joni Youngwirth:
- Employers should seek graduates of CFP programs (with or without experience) to help ensure that candidates have at least some concept of the profession.
- Create a written development plan.
- Use a 20-point system where a list of revenue-generating activities is created, each item on the list is assigned a point value, and the associate’s goal should be to earn 20 points.
- Invest ongoing time with the associate.
The vice chairman of Blackstone Advisory Partners Byron Wien doesn’t think that we’re headed for a recession in the near future, but added that there are a few troubling things in the global economy.
“The two big worries I have about the economy are capital spending and productivity. Weak oil prices have brought energy exploration and capital projects to a halt. The question is whether the consumer and housing can keep the economy from falling into a general recession. So far it looks as though we will be able to pull through with about 2% growth this year,” Wien said, according to Karen Demasters.
A Brexit would not be great for economic growth (Advisor Perspectives)
“A post-Brexit U.K. would arguably find trade with Europe harder and more costly, resulting in reduced economic growth,” wrote Columbia Threadneedle Investment’s Leigh Harrison.
“Brexit is likely to have the biggest impact on banks, retailing, domestic earnings, other financials, insurance and property,” Harrison added.
MassMutual is buying MetLife’s advisors for $300 million (Wealth Management)
MetLife is selling its US advisory business to MassMutual Financial Group for about $300 million, reports Diana Britton. MassMutual will add more than 40 local sales and advisory operations and about 4,000 advisors as part of the transaction.
“The deal also includes a product development agreement, in which MetLife will be the exclusive developer of certain annuity products to be issued by MassMutual
,” Britton added.
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