L. Fink: Bad times are coming for financial consultants

Financial advisers and asset managers must begin planning for the future how they intend to survive in a forthcoming consolidation wave in their sector, said not everyone else, but Larry Fink, executive director of the largest fund management company in the world.
This, Fink did on the last day of the Morningstar Investment Conference in Chicago.
Expected consolidation in the asset management sector will result of the pressure from advanced technologies, expected regulation, and cost-cutting pressures, in the midst of lower fees and commissions, Fink said.
Fink's thesis is that a smaller number of asset management companies will be needed in the future.
"You are in a fantastic industry, it has provided exceptional opportunities for a good lifestyle. But that will change," Flynk said.
For asset management companies, new technologies will make data analysis much easier. The democratization of information will make it increasingly difficult to fight the markets, the genius manager said.
With advances in technology, customers will become less and less likely to pay heavy fees and commissions to managers.
The financial consultants also have the challenge of attracting young clients, much more open to new technologies and other ways of communicating.
Flynk gave an example with the institution he manages, where the number of workers is anchored at 13,000 for years, despite the asset management boom.
In conclusion, Flynk warned that the huge debt of the US poses a serious threat to the future growth of the US economy.