Wirehouses Are Waning. Is the Independent Broker-Dealer Model the Next Wave of Extinction?

by Jeff Nash, Founder & CEO, BridgeMark Strategies

Published June 6 on AdvisorHub

It’s been said that a rising tide lifts all boats. But as recent trends in wealth management indicate, that is not a universal truth. Given the perilous (and growing) advisor shortage – firms are operating within a zero-sum game where one model’s gain is another’s loss … and it is a game that the wirehouse model is losing. As RIAs continue to grow at the expense of wirehouses, will RIA success spell the doom for another model – the IBD?

After an impressive run, the wirehouse channel is slowly dying. Net advisor headcount has been declining for close to two decades as financial professions forsake the traditional captive model for independence. Eroding market share and ongoing headwinds are leaving their mark on the space, as the advisor exodus in favor of RIAs (including Hybrids) continues apace.........Read More