provisions under NYTL section 210.
For others, such as private-equity owned broker-dealers
, getting profits up to a level that will make the broker-dealer
attractive for an aggressive sale price is the prime motivation.
According to the report, the top client of today's successful broker-dealer
is not a "rep" or even an "advisor" but an ensemble, which is a firm or a team of multiple professionals that service and manage client relationships.
Revenue sharing happens between the broker-dealer
and the product vendors, so it's of little concern to reps.
Regardless of your decision, high-quality broker-dealer
partnerships are important, and here's why: A firm must create enough purchasing power to buy and sell bonds with minimal markups and markdowns.
The American Council of Life Insurers, whose member insurers hold the annuities that the broker-dealers
sell, welcomed the report for pointing out the strengths of annuity products, but would have liked to have seen more thorough information about the complaints cited.
The minimal model is characterized by consolidation between broker-dealer
departments such as accounting, legal and IT.
The already-released first three "transformations" suggested that the Broker-Dealer
of the Future would identify ways to avoid "commoditization," foster organic growth of existing relationships and build a sound economic model.
If an adviser wants to sell products for a commission or a wrap fee, he or she must affiliate with a broker-dealer
and obtain the appropriate securities licenses.
Only a relative handful of banks currently provide brokerage services without the participation of a broker-dealer
that is subject to regulation under the securities laws.
In a recent conversation with an advisor at an independent broker-dealer
, I brought up a few issues of concern regarding his BD.
This was the question posed to me by David Fischer, CMO of Independent Financial Group, a broker-dealer
based in San Diego.
Based on an informal survey of our Reserve Banks, we understand that about 85 percent of those state member banks that sell mutual funds do so through a registered broker-dealer
selling on bank premises.