The fact that the fund dealer business has long succeeded, seemingly in spite of itself, has always been oddly reassuring. It represented a repudiation of the financial industry axiom that bigger is necessarily better. However, the industry has sold its soul, and the future looks increasingly grim.

Fund dealers used to do things differently. The industry’s history was a big part of the reason why. It was always a producer’s business, with no time for bureaucracy and little thought was given to corporate profitability. As a result, the advisor/client relationship was paramount. With no other master to serve, the client was king.

But, little by little, that tradition has been eroded. Corporate consolidation came to the industry, along with much greater regulatory attention. Both trends have herded planners out of their independent offices and into corporate structures. The head office has gone from being just another supplier to being the boss. And so, the folksy, entrepreneurial business has given way to the tyranny of the corporate bottom line.

Some firms now have public shareholders and, therefore, quarterly numbers to make. Others have gone into the manufacturing business, compromising their independence.

This year’s Planners’ Report Card reveals how awkward the fit between planners and corporate structure remains in some cases. At most firms, scores are heading south. Moreover, only the top producers appear to be thriving. At a time when markets are booming, much of the business seems to be struggling.

As fund dealers have come to resemble brokers, they have suffered in the comparison. After all, why would a client deal with a firm that can only sell one product? Particularly when a top-down agenda has undermined that client’s relationship with his or her advisor. For many clients, banks are now happily filling the role of mutual fund supplier.

The planning business, it seems, has lost its competitive edge. When it was a fully independent and entrepreneurial industry, it had something different to offer clients. Now that it has gone corporate, it’s hard to see the appeal.