For advisors choosing a country club type of broker dealer, it's a statement that their broker dealer is an extension of their BMW 328i and other things in their life that are high-end and exclusive.
He explained, "Jon, I really prefer the smaller broker dealer, but the larger firm has been recruiting numerous advisors while the smaller firm doesn't add that many."
As an advisor, give yourself the operating room to act like a broker dealer. Make your successes in attracting new clients known, and feel free to express the advantages of working with you.
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.
Recruiting has been impacted to a degree, primarily in the form of recruiter layoffs at several broker dealers.
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.
(I discussed this earlier in "The The Decline of Insurance Owned Broker Dealers.")
An advisor at another high-consolidation model broker dealer shared with us how he used to invite all the operations people out to a Christmas dinner at a nice restaurant near the home office.
We have yet to hear an advisor tout an improvement in their broker dealer experience through extensive back office consolidation.
The firm also provides execution and clearing solutions for other broker dealers
Many broker dealers
pocket 12b-1 fees as part of their profit center, while some credit 12b-1 fees back to the client.