If a person is sick, they see a doctor. If a person has legal troubles, they see an attorney. Logic would then suggest that a person in need of financial planning would seek the assistance of an investment professional.
This maxim however is not always adhered to within the anomaly that is the capital markets. Rather, it is tested each and every time technological innovations are made. From day-trading to house-flipping, technology advancements seeking to improve market efficiencies often drive an unintended corollary whereby individuals are tempted to disrupt or replace the entire market infrastructure. Call it hubris or ignorance, but there is something deep in the American psyche that murmurs “I am a savvy investor or entrepreneur and I don’t need professional help engaging the market!”
So what are financial professionals to do? Should they shun technological innovations altogether, or perhaps lobby Washington to stop villainizing and trivializing their essential role in the free enterprise system? Unfortunately, the only remedy for this affliction seems to be a trial by fire.
Only after dollars are lost and parties are harmed does the revelation take hold and the pendulum swings back. Such is the case today within the transforming landscape of the private capital markets. With the help of recent legislative changes, innovative technologies are for the first time entering the space. Private placement agents should embrace these trends instead of resisting them, and prepare for a market shift that will ultimately fine-tune their roles, not eliminate them. That’s where ACE Portal comes in.
This article is also closely related to Richard’s discussion of whether or not private companies should seek out the services of a broker-dealer