The 13 most telling quotes from UBS's Bob McCann in his Washington Post interview
The ex-Merrill brokerage chief's comments walk the RIA-wirehouse line
Stephen Winks
McCann’s observation as a trader, “Now to be the world’s greatest wealth management firm, I believe you need a strong investment bank. It is your eyes and ears into the market. It’s your solutions engine, your product engine. To really give people financial advice, you need to have an investment bank to inform that advice” is very telling. It is certainly true if one’s strategy is to trade very actively (old school brokerage) but does not work if one is accountable for their recommendations as required of advisors by statute.. Very few brokers come close to beating the index. There is a big difference between trading and investing. Trading does get the broker closer to the market, providing plenty to talk about, but rarely generates attractive long term results against an index.
If the consumer’s best interest is considered, accountability for recommendations and the ongoing reliability of the broker to act in the best interest of the investing public always trump chasing the hot stock to no avail. Transparency focused on results and the investment and administrative values addressed and managed by the advisor (rather than selling a product), always win in the long term. There is a far higher chance of striking out when one swings for the fences.
SCW
Related Moves
Infamous stockbroker resolves civil suit stemming from violent tirade -- the apparent final chapter in an incident that went viral and forever branded him the 'Fairfield Smoothie Guy'
Broker Jim Iannazzo went all out with high-powered attorneys and slick Las Vegas crisis pr team to limit the damage from his actions, but whether he can ever live down the incident remains to be seen.
September 1, 2022 at 5:11 AM
UBS bets its 'wealth' future on ex-Schwabbie Naureen Hassan, a corporate digital A-lister, who analysts give a fighting chance to transcend PaineWebber's ossified culture
Still a $2-billion cash-flow cow, the Swiss bank's 6,000-broker, US-based wirehouse is milking aging broker relationships with aging investors but needs a new kind of human presence, empathy, mindset and smarts to draw in Gen Z.
