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a, b, C's of Retail Mid-market Brokers: A Growing Market Opportunity

a, b, C's of Retail Mid-market Brokers: A Growing Market Opportunity

Information management continues to be the single biggest issue for small and mid-market firms. Underpinning all of their issues and opportunities is the ability (or lack thereof) to aggregate firm data into a meaningful and accessible structure.
By Adam Honoré

Boston, MA, August 10, 2005 – According to a new report by Aite Group, LLC, mid-market retail firms support 35% of the financial advisor workforce, and account for over US$1.6 trillion of current mutual funds assets under management.

This report examines the top five 'C' level issues in the mid-market retail space: Compliance, control, commissions, customers, and competition. In particular, this report focuses on the issues and opportunities that these firms face as a relatively underserved segment of the retail market.

According to Adam Honoré, a Senior Research Analyst in the Securities & Investments practice at Aite Group, and author of the report, "While regulators have predominantly focused on larger firms, smaller firms have not escaped scrutiny and discipline. Although no less compliance minded than their larger counterparts, smaller firms often do not have the staff or systems in place to adequately handle the increasing workload." Honoré also adds, "While many horizontal market providers have created mid-market strategies based on revenue size and opportunity, vertical providers in financial services have largely ignored the opportunity to effectively service our mid-market players."

This is a 33-page Impact Report. Clients of Aite Group's Wealth Management service can download the report.