Author: rafferty

A tough recruiting environment

20:55 23 January in In the News by rafferty

January 20, 2013 Andrew Osterland, Investment News Advisers are staying put, so attracting new ones is proving to be a challenge Buoyant capital markets and improving conditions in the brokerage industry have created a tough recruiting environment for independent broker-dealers. And given the generally positive outlook for the industry in 2013, it could remain difficult for firms hoping to grow by attracting new advisers. According to Larry Papike, president of recruiting firm Cross-Search, more-stable brokerage firms and more-comfortable financial advisers are translating into less movement in the industry. “Financial advisers are happier with their broker-dealers,” said Mr. Papike, who helps 75 different independent broker-dealers find new advisers. “We're not seeing the willy-nilly movement we did in the past because advisers are a happier bunch right now.” The lack of any large broker blowups recently also has...

FINRA to Mull Broker Compensation Disclosure Rule

16:43 30 November in In the News by rafferty

November 29, 2012, by Melanie Waddell, AdvisorOne Board will consider a number of potential rules and amendments at December meeting The Financial Industry Regulatory Authority plans to consider at its Dec. 6 Board meeting several rule proposals and amendments, chief among them a proposal that would require broker-dealers to disclose to customers brokers’ compensation packages. Securities lawyer Patrick Burns spoke out publicly in an October interview with AdvisorOne saying that he wants to change the status quo in broker compensation. “Our clients who are investment advisors would like to see the playing field leveled in terms of disclosures,” Burns told AdvisorOne at the time. Burns, based in Beverly Hills, Calif., told AdvisorOne in that interview that unlike brokers, his RIA clients must disclose all forms of direct and indirect compensation and conflicts of interest, including soft dollars and any...

Defying the Odds

16:25 19 November in In the News by rafferty

Rep, November 2012 by Diana Britton It’s orthodoxy that small IBDs won’t be able to stay in business given the unprecedented increase in regulatory and technology costs. Yet some tiny firms are bucking the trend. Here’s how they’re doing it. These days, broker/dealers are facing more challenges than ever. Let’s see. You’ve got your increased regulatory scrutiny from FINRA and the SEC; the fight for talent has never been more difficult; and profit margins, never fat in the independent b/d space, are under pressure. Not to sound hysterical, but many are questioning the sustainability of the small independent broker/dealer model. Will the small IBD have to mate (to achieve scale) or otherwise die? In a recent online poll conducted by WealthManagement.com, 62.5 percent of respondents (125) said the IBD business is not sustainable, compared to 37.5...