Sunday, February 1, 2015

The Advantages of a Regional Brokerage Firm

In my securities law practice I have represented large national firms, regional firms, and small local firms and hundreds of brokers from all size firms. Each business model has its own advantages and disadvantages for the adviser, and the investor. As the large firms have consolidated over the years, investors, and brokers, are finding additional advantages in the regional and small firms, at this article from Forbes points out.

Regional firms, and independent firms, offer some significant advantages to both the adviser and the client. Advisers enjoy the more entrepreneurial culture and the regional firms, and investors enjoy more individualized attention from their adviser, and the firm itself.

As discussed in the article, the advantages for advisers include increased access to the decision makers at the firm, plus,  they will be more important to these people than if they were large producers at a wirehouse. That is an advantage for their clients as well. In addition, regional brokerages generally have fewer proprietary products than their larger counterparts do. Therefore, advisors are under less pressure to offer in-house products to clients, who often perceive a conflict of interest in such sales. As stated by Forbes, "this independence appeals to advisors attracted to the objectivity and fiduciary status associated with RIAs. Additionally, regional brokerages are not associated with banks, which reduces the pressure to cross-sell bank products."

We represent advisers who transition from large firms to regional firms, and with the right mind-set, and the right account mix, those advisers are apparently more successful in their new positions - and their clients get more attention and better service.

For more information, go to The Comeback Of The Regional Broker/Dealers and if you are considering a move, then visit our securities employment section at our site, or send me an email and see how we can help you make that transition.


The attorneys at Sallah Astarita & Cox include veteran securities attorneys who are well versed in the unique issues facing brokers and advisers who are changing firms and provide representation to brokers across the country. For more information call 212-509-6544 or send an email.