Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Industry Spotlight > Broker Dealers

Poor reasons to switch B/Ds

Your article was successfully shared with the contacts you provided.

For all of the good reasons to rethink a relationship with a broker/dealer, there are some bad reasons, too. Some of the more prevalent mentioned by people interviewed for this story include:

  • Payout. If payout is the No. 1 reason a person is thinking of leaving one firm, his or her priorities might be in the wrong place.
  • The firm won’t give any money to stay. Jon Henschen, president of Henschen & Associates, says he has heard advisors say they left a firm because it wouldn’t give them a large forgivable loan.
  • Compliance for compliance’s sake. Advisors looking for rubber-stamp compliance departments are headed for trouble.
  • Outside business activities. It’s another fine line for companies to walk, but broker/dealers try to have advisors’ best interests at heart, and if they don’t feel EIAs and viaticals and the like are good for business, they likely have good reasons.