The independent financial advisory space is growing and evolving at a fast rate. The government is tightening the rules and regulations regarding client securities, which may make it difficult to break through as an independent investment banker. Luckily, there are options that you can use to better serve your clients as you make a move to the world of independence.
The median size of a U.S. IPO deal is approximately $108 million. Deciding to affiliate with a certified broker dealer may grant you access to staff, capital support, and technology to help you grow as you seek your independence. To operate as a certified broker-dealer, you may have to obtain a license from FINRA, after taking and successfully passing the FINRA licensing exams.
The right broker dealer sponsorship can help you effectively navigate the financial world, from obtaining the FINRA investment banking license to the growth of your practice. The certified broker dealer can help you manage your day-to-day operations, granting you an opportunity to focus more on growing your relationships with the clients.
But how do you find the right broker dealers in Atlanta? Here are three key factors to consider before making a choice.
1. Company’s Culture and Values
Making the switch to an independent financial advisor can be personally and financially rewarding if you find the right partner. With the certified broker dealer having a hand in your daily operations, you may need to find a firm that aligns with your values and culture.
You can commence with a review of your personal and business goals. Do you wish to have more freedom from your sponsor? Besides the services and products you receive, the ideal partner ought to have a corporate philosophy that will support your business growth and transition.
Most firms will grant you an opportunity to conduct a ‘home visit.’ As you meet with the different departments, analyze critically their culture and vision. You can have a clearer picture of if you can cultivate a long-term relationship with the company. Most importantly, always go for one that aligns with your values, and that way you won’t have to feel like you are always compromising.
2. Service and Support
You may need to find a broker dealer that provides the right service and support that your business requires. What mutual funds, variable annuities, and life insurance programs are on the firm’s approved list? A strategic partnership with a certified broker dealer means having access to a team of experts dedicated to helping your company grow. How many reps does the broker dealer have? What marketing support does the firm provide? What forms of technology will you access? You need to find a partner that acts as a one-stop-shop for anything you require to expand your business.
The long-term goal for the broker dealer sponsorship is for you to venture out on your own. The brokerage firm should help you realize the full value of your practice and set up a system in place to transition your business. Can you receive hands-on guidance as you make the change?
Finding the right broker dealer to support your move towards being an independent financial advisor is critical to the success of your business. At Bridge Capital Associates, we are dedicated to empowering budding independent investment bankers to scale their business now and into the future.