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Thus, regional firm reps occupy a middle ground between wirehouses and independent financial advisor. At one point, that middle-of-the-road niche nearly spelled the end for the smaller firms. They were outmatched by larger wirehouses like UBS and Legg Mason who were buying them out and snatching up advisors at an alarming rate as the number of reps at regional broker-dealers plummeted from 36, in to 33, in As the nation fell under the shadow of the top broker dealers by number of reps crisis inmany of the larger banks were coping with cutbacks and rebranding.
Both investors and advisors seemed to like what they found when they got to the smaller firms. One survey asked investors how satisfied they were with their primary provider. Another poll measured advisor satisfaction at 17 different firms. They have been able to deliver higher results in large part due to their top broker dealers by number of reps annual recruitment goals.
Because of their size and high turnover, annual recruitment at a wirehouse is often as high as the total number of advisors at some top broker dealers by number of reps the large regionals such as RBC Wealth Management, which has around 2, advisors, according to the report. Additionally, new technology has helped bridge the gap in resources.
Software now affords smaller firms many of the same models and platforms of larger wirehouses, according to Scott Smith, associate director at Cerulli. Despite continued growth, Smith believes that regional broker-dealers are not in danger of becoming outsized.
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