Why expenses are up and profits are down for RIAs
Last year wasn’t a very good one for RIAs when it came to generating profits and controlling expenses. Firm expenses rose more quickly than revenue, according to the 2016 FA Insight Study of Advisory Firms: Growth by Design. Median overhead per client jumped 31%, and overhead expenses as a share of revenue for a typical advisory firm leaped to 38% last year, up from 34% in 2014.
Charles Paikert – Financial Planning August 3, 2016