"Out of 1,900 advisors, 85% are affiliated with some type of tax or accounting practice," says Abramowicz. "We believe there's not a lot of trust out there. People want to deal with someone they already have a relationship with, and we view the tax and accounting professional as already in the driver's seat."
Peter Grifo, the vice president of recruiting at Cadaret, Grant & Co. in Syracuse, N.Y., sees a trend in the B-D industry toward higher costs at the B-D level brought on in part by efforts to recruit higher producing advisors, but believes 2011 will be marked by a return to value.
"I've seen a push in the industry to recruit producers at the $500,000 to $700,000 level in GDC," says Grifo. "That's fine. Our approach has been we'd rather take an advisor to that $500,000 level and beyond, and along the way build some loyalty.
"As we look towards 2011," Grifo continues, "I think there's going to be more focus on values as opposed to price. If I'm a successful financial advisor, I want to be certain of the services, the stability and the value my B-D is giving me."
Bruce W. Fraser, a financial writer in New York, writes for many publications on wealth management, financial planning, investments, small business and the green environment issues. He is a frequent contributor to Financial Advisor and is writing a book on millionaires. Email [email protected]. Visit him at www.bwfraser.com.