Independent Broker-Dealers Continue to Register Large Asset Growth

Posted on December 12th, 2018 at 10:08 AM
Independent Broker-Dealers Continue to Register Large Asset Growth

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to a recent report issued by industry consultant Cerulli; independent broker-dealers (IBDs) have posted the highest compound annual growth rate in the last five years in comparison to any other type of broker-dealer. 

Moreover, in the last five years, IBDs have registered a compound annual growth rate of 11%, compared to wirehouses, which only posted a 6% growth rate during that time period. IBDs likewise have increased their assets under management number to $3.5 trillion from $2.8 trillion in total five years ago.

Experts point to the continual focus of IBDs to recruit advisors to join their specific niche practice areas or sell certain products that attract them to bring over their asset to these types of broker-dealers. For example, niche advisors working for IBDs that focus on retirement plans have posted a 13.7% five-year growth rate in the last five years.  

In addition, new advisors are more likely to join an IBD because wirehouses Merrill Lynch, Morgan Stanley, UBS, and Wells Fargo have pushed new recruiting policies that focus on keeping talented advisors instead of recruiting new talent to their firms. As a result, IBDs have jumped at the opportunity to recruit advisors that previously would have joined the wirehouses.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, independent broker-dealers, asset growth, morgan stanley, merrill lynch, ubs, wells fargo

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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