RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

Wirehouses will create their own independent models, Tiburon report says

WIll 2012 be the year that wirehouse 'halfway houses' catch fire?

Author Lisa Shidler January 19, 2012 at 6:28 AM
2 Comments
no description available
Chip Roame: They can offer a traditional payout of 40% or so and pay for personnel, rent, technolog or they can pay a higher payout.

Bing Waldert

|

Mike Papedis

|

Chip Roame


Elmer Rich III

Elmer Rich III

January 19, 2012 — 4:38 PM

It seems prudent to assume that any competitor can copy your business model.

Stephen Winks

Stephen Winks

January 20, 2012 — 5:04 PM

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.

SCW


Related Moves

November 6, 2024 at 5:06 AM

Christa Carone, an ex-Fidelity and Xerox marketing whiz, steps onto a slippery slope at LPL with a daunting task -- to consolidate a NASCAR size brand portfolio... or not?

With no CMO since August, the chief marketing officer will play catch up for a company still hungry to buy more branded B2B and B2C players.

April 2, 2024 at 1:28 AM

DFA undergoes a sea change -- literally -- with a fancy yacht soirée, cigars and champagne as it attempts to sail away from its mutual fund image into the world of ETFs

Having just about staunched net outflows with its embrace of ETFs, DFA is embarking on a cultural shift as it tries to figure out how to sell more, even though it's less unique than it used to be.

March 13, 2024 at 1:46 AM

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

See more related moves

Mentioned in this article:

LPL Financial
RIA-Friendly Broker-Dealer, RIA Welcoming Breakaways, Advisory Firm
Top Executive: Dan Arnold

Tiburon Strategic Advisors
Consulting Firm
Top Executive: Charles Roame

Cerulli Associates
Consulting Firm
Top Executive: Kurt Cerulli



RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo

White Paper Postings


Common Tags


Recent Articles


Popular Writers


RIABiz logo

RIABiz

About Us

Directory

Archives

Connect

RIABiz, Mill Valley, California
Copyright © 2009-2024 RIABiz Inc. All rights reserved.