There are five forces of change affecting the advice industry over the next five to 10 years, Sanjiv Mirchandani, president of Fidelity Clearing and Custody, said in a webinar.
“Generally, things are pretty good for advisors,” Mirchandani said of the current situation. Growth has been strong since the crisis, and between 2009 and 2013, industry assets have grown 8%, advisor income has grown 9% and average book assets are up more than 11%.
However, “things are not as bright as they seem,” he added. About half of that growth is from improvements in the overall market. “When you look to the future, we see great opportunities but also great risks coming together to create a very different landscape for the future.”
He warned advisors not to rest on past success. “A comfortable position may not be one that puts you in the best position for the future.”