by KAREN DEMASTERS, at Financial Advisors magazine on September 4, 2024
in: FA News
Advisors are promising holistic financial planning these days, but they do not have the information they need to deliver on that promise, according to John Carey, the new CEO of Aquilance, a provider of financial administration services for high-net-worth families, individuals and family offices.
“In most cases, advisors who claim to be providing holistic planning are providing their clients with investment management, Carey said.”
Carey, who was appointed CEO of Aquilance in June, said he believes advisors need to adopt more banking techniques in combination with their wealth management.
“Advisors talk about holistic planning, but, in practice, they are only dealing with part of their clients’ financial pictures,” Carey said. “For instance, they are only working with the investment side of the estate plan, or with part of the tax planning because they do not have all of the information they need available in one source.”
Previously the head of consumer experiences for Envestnet, Carey has built his career around digital technology. He has more than two decades of fintech experience in wealth management and banking.
“Right now there is a major disconnect between what advisors claim to offer, what they actually offer, and what investors expect from them,” Carey said.
To illustrate the gap between traditional financial planning services that are promised and those that are delivered, Carey cited research by the Investments & Wealth Institute, a non-profit association for professionals who provide specialized investment, retirement, and wealth management solutions. According to the institute, 92% of investors expect advisors to offer investment management and 98% of advisors claim to offer it, but only 72% of investors say they actually receive it. In addition, 91% expect estate planning, 86% claim to offer it, but only 22% say they receive it.
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