Swimming In Shallow Water
The fastest growing segment of the advisor space, he says, is the hybrid advisor working as both a rep and as an RIA (or IAR). Studies by Tiburon Strategic Advisors and the Financial Services Institute have quoted CEOs of smaller firms bemoaning this trend, saying it is ruinous to the B-D model because advisors want huge payouts and they only give leftover securities business to their broker-dealers. But to those firms with scale, says Bruton, the hybrid model can be attractive. It lures advisors, allowing them to be nimble enough to offer different pricing models for different kinds of clients.
Yes!
