Self Reported


The Luminous breakaway news has grabbed the headlines again.  Didn’t they already breakaway?  There are several items we need to consider regarding this break.  Our blog this week will discuss the items and the ramifications for clients and other advisors. The breakaway doesn’t concern me but the self reported figures do.  Here are the main items after I take a deep breath.



Dating Sites

The Gig economy loves DIY and is self confident and self aware.  These beliefs have manifested in numerous new companies that empower people to implement functions that larger firms and their parents controlled.  Two examples are dating sites and self reported financial data.  Dating sites are thriving and self reported financial advisors continue listing inflated asset levels on their websites and pitch books.  We can solve this problem, asking the online dates to meet in person and asking financial advisors for multiple references after meeting with their team in person.

Custodian and Financial Press Surveys

Unfortunately most of the industry surveys are based on self reported data.  The data is either gathered through phone interviews or from inputting your firm's data on a computer. Both don’t require outside verification and if we are “dishonest” we will lie verbally or  online.  Our hope is that a reputable third party will emerge and validate our answers.  There are numerous forensic accountants who could help. 


Glengarry Leads

Client leads are the lifeblood of business.  The classic play Glengarry Glen Ross characterized these leads as the Glengarry leads and claimed that the sales people can’t make their quota with out THE LEADS!  The leads and the self reported data both proved to be fools gold.  Our hope is that firms  can provide their advisors with credible introductions and monitor how well the introductions work.  Unfortunately if the introductions are not monitored and credible we end up frustrated.  The technology term of Garbage in Garbage Out resonates with self reported data and leads.


There is no pot of gold at the end of the rainbow, but we will keep looking.

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