By Anna Bronstein
On Thursday, August 14th, 2014, Aronson SpringReef founder and Director, Doug Black, appeared as a guest on Fox Business Network’s Risk and Reward with Deirdre Bolton. During his interview, Black discussed Aronson SpringReef’s unique service offerings for high net worth families and nonprofit organizations, and highlighted the number one complaint he hears from clients regarding their financial advisors.
At the start of the interview, when asked by Bolton to clarify Aronson SpringReef's service offerings, Black noted that the firm does not manage any assets. Rather, he stated, Aronson SpringReef helps high net worth individuals, families and nonprofit organizations to both evaluate their existing financial advisors and to search for best-in-class wealth management providers to fit their specific needs and goals. For roughly a third of its clients, Black added, the firm provides ongoing monitoring of financial advisor relationships, helping to ensure that advice, performance and service remain aligned with clients’ needs and expectations.
When asked about his fees, Black explained that Aronson SpringReef charges an hourly rate for the services it provides, and that these fees are fully disclosed and completely transparent to the client. As an example of the value the firm offers, Black stated that he frequently helps clients to negotiate lower fees for their wealth management relationships. “We know exactly where investment advisory fees should be given a client’s level of assets, the complexity of their situation and the value provided by the financial advisors,” he noted.
When prompted by Bolton to highlight the number one complaint he hears from clients regarding their financial advisors, Black stated that conflicts of interest are at the top of the list, with many clients stating they do not believe their advisors have their best interests at heart. To Black, it’s not surprising. The majority of advisors in the country work either under the suitability standard or under a hybrid model, he explained, which means that as long as an investment is considered suitable for a particular client, it can be recommended to them – even if it is conflicted, expensive, or a poor performer. Clients are starting to sense this issue, Black commented, stating that it’s likely the reason for why fiduciary-oriented business models such as the RIA are continuing to gain momentum.
Commenting on the prevalence of proprietary investment products across the industry, Black stated that many of the large wealth management organizations are “great at some things, but not great at all things.” He added that for clients with relationships at these organizations, Aronson SpringReef works to help them take advantage of where these organizations excel, and to limit their exposure to the areas in which they’re lacking.
To watch Doug Black’s interview on Fox Business Network, please click here.
Aronson SpringReef is an investor advocate, providing independent, unbiased guidance to high net worth families and nonprofit organizations on essential aspects of wealth management. The firm offers:
- Comprehensive financial advisor evaluations, including reviews of performance and fees
- Searches for best-in-class financial advisors and wealth management firms
- Ongoing monitoring of financial advisor relationships
- Client-specific wealth management consulting
To learn more about Aronson SpringReef, please visit www.springreef.com.