Is the independent broker-dealer model really 'severely flawed'?

This week, when Ric Edelman revealed that he plans to wind down his independent contractor business, he labeled the model 'severely flawed', and stirred up - not surprisingly - a good deal of conversation across the industry.
APR 16, 2012
This week, when Ric Edelman revealed that he plans to wind down his independent contractor business, he labeled the model 'severely flawed', and stirred up - not surprisingly - a good deal of conversation across the industry. "Everyone will draw their own conclusions, but I consider the independent-broker-dealer channel severely flawed and question the sustainability of many of the players in the space,” Mr. Edelman told InvestmentNews' Bruce Kelly. “The economics are very challenging in today's environment.” But is the business model really flawed? Or is it really just viable for just a small group of firms? A number of IBDs have exited the business since early 2010 (See an updated list here), but some firms are still performing well. INTV explores the issue.

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