Transfer Time – When Decoding B/D Transfer Options, Don’t Focus on The Money
by Jonathan Henschen, CFS and featured on Henschen Associates May, 2008: For advisors pondering a move from a wirehouse to an independent broker/dealer with visions of large, forgivable transition loans dancing in their heads, it's time for a reality check. That's because, as an esteemed economist famously said, there's no such thing as a free lunch! With reps at independent B/D reps earning 90% payouts, independent firms have much smaller margins to work with than do their wirehouse counterparts. Times have certainly changed when it comes to a broker's transfer options. It was once common for reps joining a firm to be responsible for covering all their own expenses, including registration costs, business cards, stationery and ACAT transfer fees. While some firms still take that approach, the trend in recent years has evolved to...
