Small Broker-Dealers’ Secret Weapon
May 9, 2022 By Jon Henschen, ThinkAdvisor What You Need to Know Thriving smaller firms have an area of specialization, such as alternative investments. Smaller firms with high-quality advisors have fewer compliance issues because they know their advisors better than larger firms. Profitable smaller firms typically have low staff turnover, so competency is high, resulting in correct answers and quick response times. This article may run counterintuitive to many industry voices when it pertains to smaller broker-dealers, and by small, I’m referring to broker-dealers with under 200 representatives. One example of industry voices is LPL’s recent comments, on the back of a very successful year of recruiting, that they would be focused on acquisition of small BDs going forward. In spite of the doom and gloom portrayed about small broker-dealers, there are smaller firms that...
