Custodians, which hold client assets and provide back-office support for independent investment advisors, said teams have made it easier for brokers to strike out on their own. These companies, of course, are in the business of helping financial advisors break away from wirehouse employment.
The financial crisis tainted the reputations of some of the biggest brokerages, which were reshaped by mergers and leadership changes, custodians and consultants said. Industry data indicate a slow but steady migration of unhappy financial advisors, and those keen to run their own businesses, to independent channels. In some cases, breakaway teams can find reassurance in a collective move.
"It's the courage you have in gangs and groups," said Mark Tibergien, chief executive of Pershing Advisor Solutions. Knowing others "have your back" can make the creation of a new independent firm or the move to an existing one less daunting, he added.
Also, teams that generate sizable commissions and fees, and are less likely to jump around than individuals, are coveted by all types of financial service firms.
"The team concept has given them more choice," Tibergien said.
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