October 05, 2012
--- Multidiscipline
practices (MDP) offer benefits to advisers and their clients, but face some
unique obstacles, according to a study by NFP Advisor Services Group. ---
Investors
whose advisers delivered comprehensive wealth management—including investment
management, financial planning and at least one insurance product—reported
higher satisfaction levels than those who work with advisers through a
narrower, single-product or single-service engagement, according to NFP’s
research.
For
the purposes of this research, MDPs are defined as practices deriving at least
10% to 15% of revenues from each of the following: insurance, investments,
benefits and fee-based financial planning services.
“Multidiscipline Practices: The Business Model of
the Future,”
commissioned by NFP Advisor Services Group and produced by the independent
research firm Aite Group, reveals that there are a number of benefits to an MDP
practice, but the staffing and operational requirements can be complex.
MDPs attract affluent clients with complex financial
needs. Investors surveyed who
leverage MDPs to meet multiple financial needs are more likely to be business
owners and have higher investable asset levels.
“As
demand from clients and business owners drives a shift in the industry toward a
more comprehensive approach to wealth management, the study finds that the most
successful financial advisers are proactively evolving their practices to meet
this demand,” said James Poer, president of NFP Advisor Services Group. “MDPs,
with their diverse product offerings, are uniquely positioned to thrive in this
environment given their ability to meet the high expectations of clients seeking
holistic financial guidance.”