Research On Performance Evaluation Of Securities Investment Advisor Based On The Balanced Scorecard

With the increasing competition, the securities brokerage business needs urgently to transform the traditional single-channel service to the diversified value-added services. Most of the securities firms believe the investment advisory business as the breakthrough point. But most of the existing performance evaluation systems for investment advisor are still not so strict. The partial-financial evaluation index, incomplete performance evaluation process and other issues are seriously restricting the healthy growth of the investment advisor, also making against to the rapid development of the investment advisory business. In order to improve the work efficiency and promote their own initiative, it is necessary to make out a more comprehensive and effective performance evaluation system for the securities investment advisor.Based on the theories and literature refer to the securities investment advisor and performance evaluation, the essay concludes the characteristics of securities investment advisor and the principle of the Balanced Scorecard, firstly designs the system of performance evaluation for the securities investment advisor which is based on the Balanced Scorecard, and then takes the ZX Company as an example, to finalize the weight of each dimension index for investment advisor performance evaluation system which is based on the Balanced Scorecard, and then evaluates the performance of the company’s three advisory teams. The result discovers that, comparing the performance evaluation system based on the Balanced Scorecard with the traditional simple financial indicators evaluation system, the first one is much better. It is able to motivate the self-initiative and enthusiasm of investment advisor, to attract and retain the qualified investment advisors and improve them. At last, the essay analyzes the validity and precautions when using the Balanced Scorecard in performance valuation for securities investment advisor.This essay explores the performance evaluation based on the practice of securities investment advisory business, and the conclusion enriches the theory of performance evaluation which is based on the Balanced Scorecard. It is certain reference valued for the investment advisory business’ management practice of securities companies and other financial institutions.