Advisor Relationships with Broker/Dealers are Two-Way Streets

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Choosing a broker/dealer is too important to base only on money. Both parties must come to the table with commitment, integrity, mutual respect, attention to detail and open communication, as in any important relationship.

In the November 2005 issue of Broker World Magazine, veteran recruiter Jon Henschen, CFS, Henschen & Associates, St. Croix, MN, examines what happens "When Your Broker/Dealer Relationship Goes Bad." (pg.68)

Based on years of feedback from financial advisors he has paired with suitable broker/dealers, Henschen explains that existing situations can become complex, and that law, style, policy and other changes complicate matters.

“Though not necessarily unhappy with their B/D relationships, many advisors feel they’ve outgrown their firms,” Henschen says, adding: “Reasons vary. Some advisors are frustrated over poor service, for others its dated technology or compliance that sucks the life out of their marketing efforts. Those three factors-- execution, technology and compliance—can make or break a relationship a lot more often than commission rates, fees and payouts,” Henschen explains.

“It’s typical for advisors to be faced with confusing choices between large firms offering a breadth of services and technology, and smaller firms that can provide more personal service and the ability to mold the relationship to their specific needs,” he says. “We’ve learned that with so many options available to advisors, there is no universally correct choice, just a ‘best fit’ for individual advisors with different goals at different points in their careers.

“While broker/dealers and advisors both must live up to their ends of their agreement,” Henschen concludes, “When a broker/dealer relationship turns sour, it may be time to go.”

Henshen & Associates - Placing Advisors With Independent Broker/Dealers

PO Box 56

Marie on St. Croix, MN 55047

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Jon Henschen, CFS
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