SEI Advisor Network Paper Reveals New Set of Emerging Risks Threatening Advisory Firms

Paper Offers Strategies to Help Advisors Mitigate "Risk Dynamic"

OAKS, Pa., Nov. 17 /PRNewswire-FirstCall/ -- According to a whitepaper released by SEI (Nasdaq: SEIC), advisory firms face new vulnerabilities caused by a powerful combination of risks. Named for an emerging trend observed by SEI, The Risk Dynamic examines how five distinct, yet interrelated, risks compound firm pressures, such as diminished operating margins and revenues, increasing client demands, and industry scandals and struggles. The Risk Dynamic draws on proprietary survey findings, third-party industry research, and perspectives from among the more than 6,000 independent financial advisors who work with the SEI Advisor Network. The types of risk include:

1. Infrastructure, which is related to deficiencies in internal business processes and the technologies that support them;

2. Organizational, a risk driven by the allocation and management of the human and financial resources that sustain the business;

3. Fiduciary, a growing concern related to client suitability, investment processes, and the advisor's responsibility to make the right decisions for clients;

4. Reputation, which is related to the state of the advisor firm's brand recognition and perception among existing clients and in the marketplace; and

5. Client, which hinges on the strength of the client relationship, alignment of needs and expectations, transparency, and comfort with the investment process.

In addition to evaluating the Risk Dynamic's effect on firms as a whole, the paper also presents a set of strategies to mitigate each of the risks separately and in combination. According to the paper, the strategies demand an interrelated and multi-pronged approach consisting of communication, management, and process-oriented tactics.

"Despite months of market turmoil, advisors need to control the impulse to implement short-term fixes and instead focus on long-term solutions," said Kevin Crowe, SEI's Head of Advisor Solutions. "By opening themselves up to exploring new business strategies, advisors can both survive and thrive even in the face of market and industry challenges."

A full copy of the paper is available on SEI's website at www.seic.com/advisors or by calling 888-734-2679.

About the SEI Advisor Network

The SEI Advisor Network provides financial advisors with turnkey wealth management services through outsourced investment strategies; administration and technology platforms; trust, banking, and institutional services; and practice management programs. It is through these services that SEI helps advisors save time, grow revenues, and differentiate themselves in the market. With a history of financial strength, stability, and transparency, the SEI Advisor Network has been serving the independent financial advisor market for more than 15 years. As of September 30, 2009, SEI works with more than 6,000 advisors and has over $33 billion in advisors' assets under management. The SEI Advisor Network is a strategic business unit of SEI. For more information, visit www.seic.com/advisors.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of September 30, 2009, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $383 billion in mutual fund and pooled assets and manages $156 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com.

SOURCE SEI

Released November 17, 2009