It won't be long before HighTower's fee-for-service channel revenues draw even with its partner firm revenues
Chicago aggregator is in talks with 50 firms about signing up with the newly unveiled Network and Alliance options
Stephen Winks
Brilliant move by HighTower designed to be proactive and responsive to the needs of the advisor in ways our largest institutions can not respond.
The not well kept secret in advisory services is the major firms have self selected not to serve the professional (fiduciary) standing of the advisor. In the absence of large scale institutional support for fiduciary standing—the individual advisor can not achieve scale, nor has access to expert prudent investment processes, advanced technology, work flow management and more sophisticated approaches to portfolio construction which make advice (fiduciary standing) safe, scalable, easy to execute and manage as a high margin business at the advisor level.
HighTower may be the first firm to harness the free market forces at work which supports the best interest of the investing public, the professional standing of the advisor and how its services translates into attractive margins at the advisor level as a business.
The industry’s approach to portfolio construction is shifting from a pricing structure that supports expensive brokerage overhead geared to product sales where it is not possible to determine whether value is added, to pricing that focuses on addressing and managing investment and administrative values in the consumer’s best interest.
In a free market, the consumer will be the arbiter and HighTower wins.
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