Special Feature

Brokerage Report Card 2017

Investment advisors are experiencing significant growth in their businesses as their books have reached a new all-time high, but dissatisfaction is growing among advisors with bank-owned dealers as the parent banks are exerting unprecedented influence on their brokerage firms.

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Although advisors with bank-owned firms have bigger books and greater productivity on average than those with independent dealers, advisors with independent dealers are more likely to recommend their firms

By James Langton |

Investment Executive is drilling deeper into this year's Brokerage Report Card research by exploring the differences between the average investment advisors at the 12 brokerage firms included in the Report Card.

Although these data provide greater insight into the demographic profiles of each firms' advisors, they should also be read with caution because of the relatively low sample sizes that result from zeroing in on individual firms. This is exacerbated when exploring the average advisor information at the smaller firms, for which the sample is even more constricted, and in distinguishing the top 20% of advisors, based on assets under management (AUM) per client household, from the remaining 80% of the advisor population.

With that caveat, the numbers do help reveal differences in the advisors with various types of firms. On average, advisors with bank-owned firms have bigger books and greater productivity, in terms of AUM/client household. Yet, these advantages don't necessarily translate into happier advisors as the brokers at the regional and national independent dealers are, in general, more likely to recommend their firms even though they tend to have smaller books of business and lower compensation levels.

View the slideshow to explore the average advisor data for each firm:

Taking stock of each brokerage’s average advisor

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Taking stock of each brokerage’s average advisor

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Read: Brokerage Report Card 2017: Banks cast long shadows