Market Uncertainty or Market Opportunity?

How do you react when faced with market uncertainty or a crisis? Do you capitulate, ride it out, or go on offense?

The current state of heightened market volatility coupled with the banking crisis has put many into the “uncertainty” category; some may even feel we are on the brink of a pending crisis. For many wealth managers, however, there is a positive aspect to the current market conditions which represents an immense growth opportunity – provided you are willing to take it.

The wealth management sector is perfectly suited to attracting new clients during a crisis. Especially during times of uncertainty, a financial professional’s responsibility is to serve client interests; they work tirelessly to make sure they care for their clients and their best interests. They cement their reputation daily by forging a trusted relationship. And in times of uncertainty or crisis, clients put their trust in their advisor. When clients have a wonderful experience, they tell their friends and referrals roll in from people who are looking for stability and a trustworthy financial partner.

Recent wealth industry regulations such as the Client Focused Reforms and Regulation Best Interest are aimed at driving a similar best interest principle within the financial advice space, giving firms an opportunity to embrace compliance to grow their client relationships, especially during times of uncertainty. Given this backdrop and the emergence of new regulatory requirements, compliance should not be viewed as just a cost to the organization; it should also be viewed as a powerful pillar to fostering stronger, more trusted relationships with investors.

In times of uncertainty, assets switch hands at a rapid pace. One significant reason is the change in employment. As employment numbers dip, investors look to invest their nest egg elsewhere. As evidence, we recently analyzed our transactional data for four clients. Since January 2023, we observed more than one billion dollars in rollovers across more than 5,500 recommendations. This represents on average more than $180k per recommendation, almost double the average we observed in 2021.

Amidst market uncertainties, financial professionals are well suited to building trust with clients. Regulations may present a guiding light instead of a stop sign.  The combination of compliance and technology can serve to streamline prospect and client support activities, which will likely benefit wealth managers during this strong organic growth period.

Find out if InvestorCOM’s pre-trade apps can help you build your practice through the pillar of compliance. To learn more about how our technology can help your firm, sign up for a demo.


By: Randy Barnes, Director of Sales and Product Engineering, InvestorCOM