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Advisers Relying More on Internal Wholesalers: FRC

By Lee Barney, Money Management Executive
March 11, 2010
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While financial advisers have been relying on internal wholesalers more heavily since the financial downturn, they are also finding those contacts not as accessible or responsive as they would like, according to the latest installment in Financial Research Corp.’s Advisor Insight Series, “Wholesaler Effectiveness.” FRC concluded that fund companies may be underestimating and spreading this valuable resource too thinly.

“Asset managers should be aware of the call volume internal wholesalers receive, as well as the number of external wholesalers they support,” said Amy Strong, contributing researcher to the study and a research analyst at FRC.

“Failure to accurately monitor this may result in more missed calls and, ultimately, missed opportunities,” Strong added. “However, when the adviser is able to reach the internal wholesaler and when the internal is able to help the adviser with client questions, it leaves a lasting impression and fosters loyalty.”

The study also found that advisers want external wholesalers to be trustworthy, knowledgeable and reliable. Advisers with large books of business have exceptionally high expectations of external wholesalers, but when dealing with hybrid wholesalers, advisers of all capabilities appear to have similar expectations.