Ray Sclafani and Mark Hurley discuss various topics in the financial services industry, including sovereign debt, SEC regulations, the DOL fiduciary rule, lawsuits among firms, and the challenges of organic growth. They emphasize the need for advisors to think long-term and focus on adding new clients and assets, rather than relying solely on market performance and existing clients. They also highlight the importance of institutionalizing business development and creating a culture of accountability. The conversation provides insights into the current state of the industry and offers guidance for advisors looking to build their businesses.

Ray Sclafani and Mark Hurley review a litany of current events that impact wealth managers including Supreme Court rulings, the ongoing war for talent, and whether AI will materially change the business. They also do a deep dive into the new SEC cybersecurity rules and the many changes they will force upon the industry.

Ray Sclafani and Mark Hurley discuss various topics in the financial services industry, including regulatory changes, concerns about blackstone's real estate fund, the impact of aggregation software, the decline in organic growth, and the state of M&A. They emphasize the importance of cybersecurity and the need for wealth managers to focus on organic growth. They also discuss the abundance of cash on the sidelines for acquisitions and the increasing multiples in the industry.

Topics Covered:

• Cyber

• Alarm bells sounded

• Aggregation software regulators

• Growth matters

• M&A

Takeaways:

• Cybersecurity is a top priority for wealth managers, and the SEC has proposed new rules that put wealth managers at the center of the cybersecurity issue.

• Bethany McLean's report on Blackstone's real estate fund has raised concerns about the valuation of privately placed REITs.

• Regulators are cracking down on advisors using aggregation software, particularly in relation to retirement plans.

• The industry is experiencing a decline in organic growth, and firms that focus on organic growth are more likely to succeed.

• There is a significant amount of cash on the sidelines for acquisitions, but the market is becoming more efficient and deals are driven by demographics.

• Multiples in the industry are expanding due to the stability of cash flows in the wealth management industry.

• The biggest threats to the industry are cybersecurity and the flow of assets to large firms like Vanguard, Fidelity, Schwab, and Morgan Stanley.