Small B-Ds Can Travel 2 Roads

Posted on June 26th, 2015 at 3:26 PM
Small B-Ds Can Travel 2 Roads

From the Desk of Jim Eccleston at Eccleston Law LLC:

Small broker-dealers face increasing regulatory costs, and that is forcing them to decide their business path. While some older owners are looking to close shop, others are taking advantage of the opportunity to acquire firms.

Over the past 5 years, total FINRA member firms have dropped by 14%. Plenty of broker-dealers and reps are left looking to be picked up or bought. But large firms are not necessarily looking to bulk up.

Compliance issues are a factor. Tina Maloney, Chairman and majority owner of Winslow Evans & Crocker Inc., feels, “There’s no sense purchasing a small firm without huge assets [and then] picking up all their compliance issues.”

Small firms are taking advantage of the opportunity. They can merger exiting firms and scale compliance expenses. Merging also allows small firms to avoid competing with large firms in recruiting. But potential recruits often are concerned with a small firm’s ability to deal with regulatory costs, arbitration awards, and increasing FINRA enforcement activity, including FINRA fines, which have increased 125% since 2013 to $135 million. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, FINRA

Return to Archive



We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


October 15, 2021
FINRA Bars Former LPL Advisor Who Allegedly Misappropriated Elderly Client’s Funds

The Financial Industry Regulatory Authority (FINRA) has barred a former LPL advisor who allegedly misappropriated a senior client’s funds and subsequently failed to cooperate in FINRA’s investigation.

October 14, 2021
NASAA Targets Unpaid Arbitration Awards With Proposed New Model Rules

The North American Securities Administrators Association (NASAA) has proposed new rules in an attempt to reduce the large number of arbitration awards that go unpaid to investors who prevail as claimants in arbitration proceedings.

October 13, 2021
SEC Freezes Assets and Halts Alleged Fraudulent Scheme By Ron Harrison

The Securities and Exchange Commission (SEC) has obtained an emergency court order freezing the assets of Ron Harrison, who allegedly operated an ongoing fraudulent scheme.