A “perfect storm” of changes in the wealth management industry are making independent wealth advisors the future of the sector, according to Ryan Hicke, managing director of Independent Wealth Advisors, EMEA, at SEI.

"The financial planning industry is currently experiencing a 'perfect storm' of dynamics transforming the wealth management industry for good, and forcing all intermediaries to adapt. The loss of trust end-clients feel towards their advisor, the disruption of income through market depreciation and volatility and the burden of regulation have forced all intermediaries to review their business models," says Mr Hicke.

He feels this is a great opportunity for wealth management organisations to transform their business model to ensure they can compete in the future.

"Those that most effectively transform their business model will deploy resource and capital to create a more scalable, profitable and personal client experience centred around advice and service. They will invest in sustained professional development at a higher pace than IFAs in order to provide a consistent and trusted service.

They will support centralised, uniform processing capabilities, which will include the use of co-sourcing to increase efficiency and mitigate risk, thus allowing the independent wealth advisors to focus on their core values and transforming their business for growth,” he said.

“Undertaking change of this magnitude will be challenging, but IWAs are fully aware of the benefits associated with achieving the goal, and understand that change will need to be approached as a revolution, not an evolution,” he added.

As of 31 December 2008, through its subsidiaries and partnerships, SEI administers $380 billion in mutual fund and pooled assets and manages $134 billion in assets.