Independent Broker Dealer – “Indie broker-dealers” are identifying new talent”
The following is an edited transcript of the NextGen Channel Spotlight session on independent broker-dealers. The panelists were Larry Roth, president and chief executive of Advisor Group, and Amy Webber, president and chief operating officer of Cambridge Investment Research Inc. The session was moderated by Derek Klock, assistant professor of practice in the department of finance at Virginia Tech’s Pamplin College of Business. Mr. Klock: Advisor Group is one of the largest networks of independent broker-dealers in the U.S. With the recent addition of Woodbury Financial [Services Inc.] to FSC Securities Corp., Royal Alliance Associates Inc. and SagePoint Financial Inc., Larry manages more than 800 employees who serve the needs of about 6,000 total licensed advisers & broker dealers.
Mr. Roth: The independent adviser space has grown very dramatically over the last 20 years or so, and it’s done that, frankly, because many, many more people — today more than ever — need help planning for their retirement. So a lot of our advisers spend time counseling people on growing their retirement nest egg, so to speak, and now that more and more people are retiring, our advisers are helping them with income strategies, etc., and estate planning & Independent broker dealers.
One of the reasons I’m excited about talking to you in particular is that as the baby boomers have aged, so has the adviser population, and many of you are familiar with this. And we’ve gotten to a point where the need for advice has never been greater, and because of the aging population of advisers, the need for new advisers has also never been greater. And Amy will probably share this with you as it relates to her firm, but specifically in our firm, we have more advisers in the 70-years-of-age-plus range than we have in the 30-years-and-less range. And with the great training that you’ve had at your school and the certifications that you’re earning, you’re going to be entering this market at a really, really wonderful time & independent broker dealer.
January 20, 2013, InvestmentNews.com
Choppy Waters Persist – “Small Independent Broker Dealers are still struggling with compliance and litigation costs.
Written By Bruce Kelly with Investment News, he state, “Small broker dealers will continue to face strong head winds in 2013, and dozens will shut down, seek a merger partner or abandon the transaction-oriented style used by securities houses to become registered investment advisers that charge fees rather than commissions. Difficulties such firms face include higher compliance costs, record low interest rates for money market accounts, competitive commission rates from large or discount broker-dealers and a tax increase that will cut available discretionary funds that investors can put to work in the stock market. Defined by the industry as any broker-dealer with 150 registered representatives or fewer, small B-Ds make up the overwhelming majority of firms registered with the Financial Industry Regulatory Authority Inc. In the the first 11 months of 2012, pressures on the industry reduced the number of FINRA registered firms to 4,319 — 97 fewer than the year before” & Changing broker dealers.
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