Incoming fiduciary standards likely to level commissions

In light of both the SEC and DOL fiduciary proposals, the study recommends that registered advisors adopt tools to create an audit trail of their advice and recommendation processes, as regulatory oversight of fiduciary practices is expected to intensify in 2013.

Among the report's additional findings:

• The largest wealth management firms will pursue growth by acquiring firms or by growing organically.
• Registered investment advisors will endeavor to  become more operationally efficient. Contributing to the trend will be the acquisition of independent RIAs by "roll-up" firms that will help the acquired firms implement new technology and best practices.
• Exit planning will become a top issue for the more than 40 percent of advisors, among them soon-to-be retiring baby boomers, who currently lack a succession plan.
• Wealth management firms will seek to growth by providing differentiating and revenue-enhancing services to clients or by reducing the cost of serving clients.