The purpose of this research is to provide readers with a comprehensive understanding of the independent reps market, which is a large and diverse market of Series Seven registered reps who own their own businesses and utilize independent broker/dealers & insurance company owned broker/dealers such as LPL Financial Holdings, Ameriprise Financial Services, Raymond James Financial Services, Cetera Financial Group, Osaic Wealth, & Commonwealth Financial Network. Some independent reps are dually registered, having their own fee-based financial advisors (RIAs); those reps are referred to as dually registered financial advisors in this research and are likewise addressed in Tiburon's fee-based financial advisors (RIAs) research. This research is part of Tiburon's broader coverage of independent advisors.
Context Setting
This research begins with a context setting explaining the difficulties in sizing the independent reps market, including:
- Overlapping Definition with Insurance Agents
- Overlapping Definition with Fee-Based Financial Advisors (RIAs)
- Sloppy Counting of Registered Assistants
Historical Phases
This research addresses the historical phases of the independent reps market, including:
- Industry Emergence Phase
- Firm Restructurings Phase
- Industry Maturation Phase
- Headwinds Phase
Market Segments
This research outlines the key market segments of independent reps, including:
- Independent Broker/Dealer Reps
- Securities Registered Insurance Agents
Service Providers
This research outlines the key service providers to independent reps, including:
- Independent Broker/Dealers
- Open-End Mutual Fund Companies, Annuity Companies, & Other Product Companies
- Technology Companies & Turnkey Asset Management Programs (TAMPs)
- Clearing Brokers
Future Predictions
And this research makes several future predictions for independent reps, including:
- Moderate Growth of Independent Reps
- Continuing Exit of Insurance Companies From Independent Broker/Dealer Market
- Growing Importance of Dually Registered Financial Advisors
- Continued Profitability Pressures on Independent Broker/Dealers and Evolution of Independent Broker/Dealers to Look More Like Producer Groups and/or Custodians
- Continuing Late Shift to Managed Account Programs
- Continual Challenges to Clearing Brokers Due to Focus on Managed Account Programs