broker dealer Tag

100% Advisory Payouts & 7 Other ‘Heresies’

June 28, 2017 By Jon Henschen, as published on ThinkAdvisor Advisors take note: Many sacred cow profit centers being disrupted by broker-dealers promoting “loss leaders” to prospects There is a mad scramble going on as new DOL rules erode once reliable sources of independent broker-dealer revenue. Shifting or creating new profit centers is becoming an obsession for broker-dealers. For some, it’s a matter of survival. For others, such as private-equity owned broker-dealers, getting profits up to a level that will make the broker-dealer attractive for an aggressive sale price is the prime motivation. New DOL rules are also causing broker-dealers to implement more conservative compliance policies that many advisors find too restrictive. For firms that buck the trend, they are quickly shot down with an almost religious fervor. An example of this is the 100% advisory...