We will find you the best broker dealer that matches your needs. Financial Advisor Placement Services helps financial advisors sift through all of the options and questions involved in switching firms. We are experts in the broker dealer market. The people at Financial Advisor Placement Services have been working with and developing relationships with independent, regional and national broker dealers since 2007. We understand the clearing platforms and product offerings and understand the firm’s philosophy, so that we find the best broker dealer to suit your needs.
Our initial conversation will have one goal: to learn about your practice, your clients, and your requirements in a new broker dealer. We will start with our list of over 70 quality broker dealers. We will then create a short list of broker dealers to recommend for your consideration. Based on your initial feedback, we will then have initial, confidential conversations with these firms to see if there may be a good fit. Then next step is to arrange phone conversations with these broker dealers. We then narrow the list down to a hand full of firms and set up face to face meetings either at the home office or near the candidate’s location, whatever is most convenient for the candidate. With the firms that are of most interest, we will work with the firms to get competitive offers together and present them to the candidate.
We will work with you every step of the way as your “agent” to work through the firm information, schedule calls and meetings, and give you advice on which offers may be more attractive. Whenever possible we would like to attend the meetings with you so that we can represent you as best as possible. We will do a “pros and cons” analysis or help you spreadsheet the value that each firm can bring to your practice.
Once the decision is made on which firm to go with, we get you engaged with that firm’s transition team, to ensure a smooth transition. Our goal is to make this transition as painless as possible. In some cases, the broker dealer will place people in your office to assist you in moving your client accounts.
Small Broker Dealers Tarnished by Private Placements
There has been much noise around independent broker dealers (IBDs). The Small Independent Broker Dealers (SIBDs), who have less than 500 advisors, have received much of the negative press. Some SIBDs shut down in 2011 and 2012 resulting from the IBDs, who sold private placements, REITs, and TICs that had gone south. Medical Capital, Provident Royalties, and DBSI, Inc. created sanctions and fines causing about 50 IBDs to go out of business are reported by the Investment News. This has caused financial advisors to become especially wary of all of the IBDs, especially the SIBDs, as the public has “thrown the baby out with the bathwater.” We recently spoke to a team of advisors who decided to put their move to an independent broker dealer on hold, due to the recent “stability “concerns they had heard about smaller broker dealers.
The Truth behind the Numbers
The decrease in number of IBDs follows suit with the decrease in the number of Financial Advisors. There were 79,802 independent financial advisors in 2011, down almost 14% from 92,727 in 2010. If you count dually registered advisors then the decrease is only 11% from 2010 to 2011. This compares to all financial advisors decreased from 323,566 to 316,109, a 2% decrease. The independent financial advisors rate of decrease is much higher than those of all advisors. The independent advisors who were lower producers left the business as a result of the 2008 meltdown, or retirement, while others may have gone RIA, or possibly into the bank channel. The pace of the advisors leaving the wirehouses has also decreased since 2008 due to recruiting and retention bonuses