Commonwealth CEO Wayne Bloom brushes off rep pushback, spins off Advisor360 to sell formerly exclusive software and research to competitors
Louis Diamond Quoted
By Oisin Breen
When Wayne Bloom last cast the bones, he faced an existential dilemma: cannibalize his own business to save its much vaunted technology, or watch it wither on the vine as costs mounted.
Then, just over a month ago, the CEO of Commonwealth Financial Network announced his decision, four years in the making.
It’s a “brilliant” move, but, it’s also risky, because Commonwealth’s leasing out the very USP that’s given it an edge in recruiting and retaining advisors, counters Louis Diamond, principal of NYC consultancy Diamond Consultants.
“There’s a risk, and I’m sure they’ve thought about it; that they begin to cannibalize their business. All of sudden, you’re creating some pretty viable and well capitalized competitors,” he explains.