Break-Away Brokers:
The (Overstated) Trend of Captive Investment & Insurance Advisors Going Independent

Recently Released!!!
Date Published: June 8, 2017
Summary PPT Deck: 65 Slides

Reference PPT Deck: 545 Slides

The purpose of this research is to provide readers with a comprehensive understanding of the (overstated) break-away brokers trend. Break-away brokers are generally defined as captive (employee) financial advisors from the wirehouses, regional brokerage firms, investment banks, private banks, retail banks, insurance companies, & even discount brokerage firms that choose to go indepedent, repositioning their businesses as independent advisors (independent reps and/or fee-based financial advisors (RIAs)). That said, industry data is extremely sloppy, with many sources including financial advisors nudged out by their former employers due to low productivity (broken away brokers), other sources confusing data for financial advisor teams, financial advisors, & registered assistants, and almost all sources including captive advisors that simply move to other captive models and independent advisors that move to other independent models. Hence, the goal of this research is to accurately measure the narrowly defined break-away brokers trend of successful financial advisors moving from captive to independent models. This research leads to critical conclusions for Tiburon's coverage of financial advisor channels, full-service brokerage firms, insurance agents, and independent advisors.

This research addresses the historical phases of the break-away brokers trend, including: 
  • Emergence Phase
  • Mis-Reporting Phase
  • Accuracy Phase

    This research addresses the reasons behind the movement, the reported movement size, and the sources of financial advisor teams and financial advisors changing firms.

    This research then re-sizes the break-away brokers trend to only count successful financial advisors who move from captive to independent models, utilizing three overlapping yardsticks, including: 

  • Financial Advisor Teams & Financial Advisors Changing Firms
  • Successful Financial Advisor Teams & Financial Advisors Changing Firms
  • Successful Break-Away Brokers

And this research makes several future predictions, including: 

  • Continuing Moderate Size Trend of Financial Advisor Teams & Financial Advisors Changing Firms
  • Insurance Companies & Independent Broker/Dealers to Rival Wirehouses as Leading Sources of Financial Advisor Teams & Financial Advisors Changing Firms
  • Continuing Relatively Small Trends of Successful Financial Advisor Teams & Financial Advisors Changing Firms
  • Captive-to-Captive and Independent-to-Independent Movement Trends to Remain Larger than Break-Away Brokers Trend
  • Moderate Growth in the Relatively Small Break-Away Brokers Trend
  • Financial Advisor Aggregators to Continue to Capture Largest Break-Away Brokers
  • Continuing Extremely Small Boomerang Trend
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