Different directions: The all-powerful investment consultancy industry is reinventing itself, but are investors benefitting?
After following a model that had been largely unchanged for decades, investment management consultants are reshaping the way they do business to meet new challenges.
Increasingly complex markets are boosting the need for expert advice, but they are also putting pressure on consultants’ margins. At the same time, consultancy firms are having to innovate in order to shield themselves from disruption in the digital era.
Some advisers are reacting to these outside forces by shouldering more risk to attract clients, while others are selling additional services in a bid to subsidise consultancy operations. These moves are, however, fuelling concerns that conflicts of interest are rife among consultants, who have often been accused of failing to strike a balance between stakeholders.
One of the biggest changes seen in the industry, and probably the most controversial, is