What is the best reason to form a strategic alliance, as opposed to forming our own wholly-owned financial services subsidiary?
The answer is, for the same reason tourists often hire guides to lead them through unknown foreign countries. A strategic alliance increases your confidence that financial services will be introduced to your clients in the right way, with the help of people who understand the nuances of investment strategies, insurance underwriting, retirement plan administration, SEC and FINRA compliance, and portfolio risk management. There is a great deal to learn about insurance, investment, and advisory services—and you can learn it faster and with fewer mistakes and less cost when you have experienced guides. Also, you can gear up your financial services faster and with less commitment of capital and staff resources when you form a strategic alliance.
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