Independent broker/dealers have been facing increasing pressure with fee compression on the rise and advisors increasingly expecting more and better services. But the difficulty in retaining advisors is only going to increase with the implementation of the Department of Labor’s fiduciary rule.

The pressure is definitely on for IBDs to step up their game, said Diamond Consultants founder Mindy Diamond.

“The two constituencies that are going to feel the effect of the DOL changes or any regulatory changes the most are the wirehouse and the IBDs because they model that need to manage to the lowest common denominator,” she said, adding this creates an incentive for advisors who can afford to leave the IBDs for an RIA with less compliance headaches.

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