What To Look For In

A Broker-Dealer Partner

In many instances, a financial advisor may want to consider partnering with a broker-dealer to assist with the transition to a fee-based practice. A broker-dealer can provide a wealth of expertise, resources and support.

Here are six of the most important considerations in selecting a broker-dealer:

Account Reporting Capability–The broker-dealer must be capable of producing sophisticated performance reports. This includes the required quarterly updates for clients and analyses for the advisor.

Technology–The latest in technology and software support, including monitoring and managing assets and online access to client account information.

Transition Support–Everything from instruction and handholding for the advisor to materials that explain the changes to clients.

Continuing Education and Training–As advising clients becomes the foundation of the practice, the advisor will need to stay up-to-date on the business.

Compliance–SEC/Advisory rules are changing rapidly and an advisor needs expertise to remain compliant.

People–The advisor should feel comfortable with the people he or she will deal with and confident in their ability to deliver.

Carolyn A. Jergens


Reproduced from National Underwriter Edition, April 14, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.