Wirehouses will create their own independent models, Tiburon report says
WIll 2012 be the year that wirehouse 'halfway houses' catch fire?
Elmer Rich III
It seems prudent to assume that any competitor can copy your business model.
Isn’t a wirehouse which doesn’t acknowledge or support the best interest of the consumer (fiduciary standing) vulnerable to large scale firms that do, and thus by extension isn’t the same vulnerability extended to an independent broker/dealer affiliate of the wirehouse ? In both cases the best interest of the consumer is not being served. By affording the same wirehouse resources to independent brokers, doesn’t it cheapen the wirehouse brand and raise questions on the value added derived relative to the extraordinarily high overhead cost of a wirehouse.
Raymond James and more recently FiNet , the independent broker/dealer of Wells Fargo Securities, make a great point of amortizing overhead over two distribution channels with a nominal marginal increase in overall cost. Yet the question in today’s highly competitive and increasingly transparent business environment is the depth and breadth of expert counsel the wirehouse supports. This makes the wirehouse/independent broker dealer alignment a relatively insignificant consideration—as the best interests of the consumer has always determined ultimate market success—and the wirehouse’s inability to acknowledge and support expert fiduciary standing does not bode well for the brokerage industry in the immediate future and most especially the long term.
This is a fundamental question of brokerage industry survival when continues to act counter to the best interest of the consumer even if it gets better control over its overhead.
Fidelity Investments' plan to hire 12,000 by October hit wall of macro-headwinds; no problem, it landed at 15,000; Schwab keeps hiring, too
The Boston giant's people grab could be derailed by indigestion -- the inability to assimilate staff -- an analyst says; but it has yet to materialize so the hiring spree rolls on.
October 29, 2022 at 12:02 AM
How a white senior vice president at an LPL OSJ came to hire a former black minister as recruiter despite the latter's pledge to make it 'uncomfortable' at times
Rob Sandrew hit it off with Keith L. Frasier, willing to speak up on racial and racial justice issues, who also checks all the boxes for attracting talent and assets at a firm that recruited $2 billion last year
August 19, 2020 at 2:18 AM
Executive shake-up and staff hiring binge change Dynasty Financial Partners' talent mix, with Todd Thomson, Scott Welch, Ed Friedman and 12 women as headliners
The St. Petersburg-based producer of 'synthetic RIA scale' will continue to aggressively hire and adjust its talent ranks as it readies for next growth push.
September 24, 2019 at 2:02 AM
A 20-year Merrill Lynch veteran got Sanctuary Wealth to $10 billion in AUA in 15 months with no outside capital and no time in bed: 'Nobody's slept since April'
Jim Dickson also recruited HighTower talent, Amit Dogra, to bring the old HighTower brokerage model and execute it as HighTower veers toward buying RIAs
August 15, 2019 at 7:58 PM
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