Janney Pilots Platform for Rep-as-PM Newbies

The following is an article from GatekeeperIQ by Hannah Glover and can be read in full on the GatekeeperIQ website.

As advisors clamor for greater control over client assets, Janney Montgomery Scott has built a new platform to help those new to running discretionary accounts learn the ropes.

The Pioneer program allows advisors full discretion but with guardrails that limit advisors’ access to product options and, based on advisor education and experience, the degree of flexibility they have in building portfolios.

“We live in a world where investments have to be tactical, have to be flexible, and have to be dynamic,” says Tracy Gallman, former LPL product development executive and president of Gallman Consulting Group. “When you don’t have discretion and have to get client consent [to sell or buy a new position], it slows down the process.”

The extreme volatility of 2008 and 2009 highlighted how devastating slow decision-making could be to a portfolio, driving more advisors to seek greater control over client accounts. While home offices like the consistent revenue and long-lasting assets such programs typically bring, they also want to manage the risk they represent if advisors lack skill or training.

“There is a lot of discussion out there about how do we take our non-discretionary platform and make it discretionary,” Gallman says. “It’s really something that the industry has to look at,” she says.


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