Pierre Buhler spoke with InvestmentNews about Goldman Sachs’s decision to drop its registered investment advisor business.
Pierre shares his point of view on the shift in strategy, “Goldman’s shift echoes its transition during the 2008 crisis when it acquired a banking license, granting it new strategic avenues like broadening its client base and launching consumer lending products. Schwab and Fidelity have established themselves in the high-net-worth sector, underscoring the challenges of serving this segment, which is perceived as being closer to consumers, necessitating automated and integrated processes.”
He continues, “The central task for Goldman Sachs lies in divesting assets that slow down its growth trajectory and reorienting toward its primary business. Aligning with this shift, streamlining the compliance group to match the scaled-down organization is vital, given the substantial compliance costs that hastened Goldman’s exit from consumer business. In essence, Goldman Sachs’ strategic realignment encompasses a return to its core business and divestment from high-net-worth advisory services, enhancing its ability to navigate potential recession risks.”
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