Broker-Dealers Go Courting
Barbara Herman Quoted
By Eric Rasmussen
The war for talent in the independent broker-dealer industry is real, say recruiters. Whether it’s giant firms like LPL cutting admin fees or midsize companies offering niche services like impact investing, the companies in this space are having to step up to offer better technology for their advisors, offer better back office help and better transition help. … And a nice payout isn’t bad either.
When it comes to those fees, recruiter Barbara Herman of Diamond Consultants says advisors need to look at the business they are already doing if they want to move, then see what it’s going to look like on the new platform, and decide if it makes sense for them. Payout is only the beginning of the story. “There are a host of other expenses that reduce that top-line payout,” says Herman. “So there’s a lot of homework the advisor has to do so that they can compare apples to apples. There are some firms that might have 20 pages of calculations that take an advisor from the top-line payout to the net payout before the advisor’s personal business expenses. There are other firms that can do it in two pages.”