Is the independent broker-dealer model really 'severely flawed'?

This week, when Ric Edelman revealed that he plans to wind down his independent contractor business, he labeled the model 'severely flawed', and stirred up - not surprisingly - a good deal of conversation across the industry.
APR 16, 2012
By  Mark Bruno
This week, when Ric Edelman revealed that he plans to wind down his independent contractor business, he labeled the model 'severely flawed', and stirred up - not surprisingly - a good deal of conversation across the industry. "Everyone will draw their own conclusions, but I consider the independent-broker-dealer channel severely flawed and question the sustainability of many of the players in the space,” Mr. Edelman told InvestmentNews' Bruce Kelly. “The economics are very challenging in today's environment.” But is the business model really flawed? Or is it really just viable for just a small group of firms? A number of IBDs have exited the business since early 2010 (See an updated list here), but some firms are still performing well. INTV explores the issue.

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound