Outsourcer says brokerages in need of technology and consulting services. Given an extra $100,000 to invest in their businesses, most broker-dealers would invest in technologies to automate and integrate service platforms. So says investment processor and manager of managers SEI, which polled attendees at a recent summit for broker-dealers.

SEI's poll found that 62% of its Power of Three conference attendees said they would invest in technologies to streamline their businesses; 27% reckoned that best-of-breed technology is a selling point for advisors.

Delegates from 25 national broker-dealers attended the two-day summit, which SEI cast as a forum for industry players to share ideas about advisor segmentation, barriers to growth, technology and practice management.

It just so happens

When asked how the broker-dealer space differs now from five years ago, the consensus among attendees was that advice as opposed to commissionable business is in the drivers' seat these days. A little more than two thirds of them said they were more open to fee-based programs than they were in 2002. Broker-dealers also cited increased regulatory oversight as a major change factor, "along with" -- as SEI puts it in a press release -- "a shifting focus from providing products to assuming more fiduciary responsibilities."

In terms of the changes they saw taking place between now and 2010, a clear majority of those polled said that industry consolidation was likely to continue. In response to the increasing commoditization of their services, they saw a continuation of the move toward holistic -- which generally means goals-based -- advice. They also foresaw the advisors' need for compliance support forging closer ties between advisors and their broker-dealers.

Asked what they wanted from platform providers -- and SEI is a platform provider -- 24% of attendees said they were looking for advice and support and 14% said they were most interested in investment implementation and packaging. Another 24% said they could see their firms calling on outsiders "for organizational improvements and efficiencies," according to SEI.

SEI recently put together a team dedicated to providing broker-dealers with business support and troubleshooting services.

"As the business of financial advice continues to grow more complex and competitive, broker-dealers will be increasingly important to advisors," says Chris Arizin, head of SEI's broker-dealer support team. "SEI is focused on creating that link and guiding our clients as trends and opportunities emerge."

Oaks, Pa.-based SEI administers $407 billion in mutual fund and pooled assets and manages $199 billion in assets. -FWR

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