In our consultation with one small group, for instance, the advisors had narrowed down their list to two broker dealers. One was a larger firm that was very good at perpetuating the herd mentality.
Industry publications announced regular movement to broker dealers, touting the group's assets and discussing why they moved to whatever firm they had ultimately chosen.
Founded in 1989 in New York City, Northeast Securities is a prominent US independent broker dealer with over USD 5.5bn in customer assets, servicing domestic and international clients.
Founded in 1989 and headquartered in Miami, GIS is an independent broker dealer with more than USD 2.5bn in customer assets, that provides investors with access to global capital markets through a range of products, services and support, all integrated into a seamless platform.
department in a broker dealer
: that compliance officers should be in a
We also will continue to work with the NASD to obtain further improvements in disclosure by broker dealers
selling securities on banks premises.
This is because broker dealers have numerous profit centers in assets being held in brokerage accounts, but these assets are held away from brokerage accounts--and hence the low profit.
Insurance-owned broker dealers are rarely profitable endeavors and if they do manage to be profitable it is most always marginal, so when the parent company's primary profit center (annuity products) is compromised, these BDs resort to cost cutting and/or consolidation.
The problem with mutual funds is that: "Many broker dealers
pocket 12b-1 fees as part of their profit center," he write, and says that "following the track of regulators' discussion leading to the DOL fiduciary rule both broker-dealers and advisors will no longer receive 12b-1 fees in [IRA] fee accounts."
Broker-dealers will see a sharp decline in revenue sharing, which for many broker dealers has filled the void of revenue left by low money market rates since 2008.
Many broker dealers pocket 12b-1 fees as part of their profit center, while some credit 12b-1 fees back to the client.
"Independent broker dealers
have become insecure about due diligence on REITs and alternative investments because of the problems that resulted from said products between 2009 and 2012," explained Jon Henschen, head of the recruiting group Henschen & Associates.