With new name, broker-dealer group retrenches and sets relaunch

After dropping off the radar screen for the past year, the National Association of Independent Broker/Dealers Inc. plans to relaunch itself next month with a new name, the National Association of Broker Dealers. The “independent” part of the old name was dropped to attract firms that are not independent-contractor broker-dealers, said compliance consultant Carolyn May, who became NABD chairman in January. “We didn't feel like that [old name] indicated what we are,” Ms. May said. The newly rechristened group plans to launch a new-member drive, with an updated website and a schedule of regional meetings in place of a national conference that flopped last April year from lack of interest. “We decided a national symposium is not what we want to do,” Ms. May said. “Small firms don't have a lot of travel money, so we're going back to regional [meetings] and reconstituted the [NABD] board with members from around country.” Ms. May said it's been about year since existing NAIBD members have been contacted. “We have to do a better job of communicating with the constituency we have,” said Howard Spindel, founder of Integrated Management Solutions USA LLC, a compliance consultant, and current NABD treasurer. Dues for NABD members will stay at $300 per year. “Our members can't afford to be members of large trade organizations” such as the Securities Industry and Financial Markets Association and the Financial Services Institute Inc., Ms. May said. “The FSI, from what I've seen, seems to be leaning a little bit more toward advisers,” she added. “That's a niche that needs to be covered, as well. But there's not a group out there that is really an advocate for small B-Ds.” Not so, FSI spokesman Chris Paulitz. The FSI does indeed represent small B-D firms and has several small-firm representatives on its board, he said. The trade group for independent contractors has 105 B-D members and 35,000 individual financial adviser members. Firms pay $1,500 or more per year in dues, depending on size. Individual advisers pay as little as $99 per year if their firm is an FSI member and part of a campaign to enroll advisers, or as much as $199 if their firm is not a member. Ms. May and Mr. Spindel did not know exactly how many members the NABD has but Ms. May said that as of early 2011, the NAIBD had about 330 members. “We have to some extent retrenched,” Mr. Spindel said. “But we have people on the board from all over the country who are devoted to the mission of promoting broker-dealers, and particularly the small broker-dealer,” he added.