Top 10 hottest trends in the IBD industry
Industry experts for years have predicted the death of the small IBD. But many small firms, which have shown incredible resilience to carry on in the face of rising costs, are not ready to pack it in.
There is no doubt the securities industry is shrinking. Since the credit crisis, firms have been closing their doors at an alarming rate. From 2010 to 2015, the number of licensed broker-dealers dropped from 4,578 to 3,957, a decrease of 13.6%, according to data collected by Finra.
John Rooney, managing principal of Commonwealth Financial Network, said last year the Labor Department's fiduciary rule proposal could decimate the number of IBDs.
It may be that 2016 is the year that pushes many of the remaining small firms over the edge.