Independent Broker Dealers
by Bruce Kelly and featured in Investment News January, 2007: New York - After a banner year for recruiting advisers in 2005, many independent-contractor broker-dealers saw the growth in snagging new registered representatives stall last year. Recruiting was flat or down in 2006, compared with its momentum a year earlier, according to brokerage executives, recruiters and consultants, who nonetheless are optimistic about this year. But it may be an uphill battle. Across the brokerage industry, the movement of experienced financial advisers between firms dropped 14% to 15% last year, compared with the level in 2005, according to John G. Peluso Jr., chief executive of Wachovia Securities Financial Network LLC, which is the independent-contractor-representative business of Wachovia Securities LLC of Richmond, Va. That said, 19% of the registered reps who were recruited last year to join Wachovia...