In the News

Faking It: Our Third-Annual IBD Report Card Survey

February 4, 2013
by Diana Britton, Wealth Management .com

In our third annual Independent Broker/Dealer Report Card Survey, reps turned out to sing the praises of their firms. But who are they kidding? The IBD business is in a tight spot.

When you’re a parent, you always want to shield your child from the brutal realities of the world. You want them to maintain that wide-eyed innocence for as long as possible.

But sooner or later, they realize: It’s a dog-eat-dog world out there.

Same goes for the independent broker/dealer business. In REP.’s third annual Independent Broker/Dealer Report Card Survey, fielded at the end of last year, 2,873 advisors turned out to advocate and endorse their firms, giving them high overall scores in categories from compliance to compensation and benefits.

IBD Recruiters: Advisors Demanding More Than Ever, Especially Money

January 29, 2012
by Diana Britton, Wealth Management.com

Industry recruiters said advisors at independent broker/dealers are expecting more from their firms than they ever have before, especially when it comes to up-front money.

“Financial advisors are more greedy than ever,” said Jodie Papike, executive vice president of recruiting firm Cross-Search in Jamul, Calif.

During a session at the FSI OneVoice 2013 in San Diego, Calif., Papike said she recently spoke with a $100,000 producer, and the first thing he asked was how much up-front money he could get for moving. “That’s the reality.”

Ryan Shanks, CEO and founder of Finetooth Consulting, said there are reps that are less greedy, but their main concern is being at a firm that’s stable.

A tough recruiting environment

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 reduced the number of advisers looking for new homes.