All the new ridiculous regulations that are meant to increase regulatory costs are being lobbied for by the big wirehouses. They want to be the only game in town. Couple that with the drive to create robo-advisors... these large firms want to destroy any sort of living for advisors. For years they've been pushing out the "smaller" $300-500k producers to consolidate advisors and increase profits. It's clear their intention is to increase the costs for smaller guys and reduce jobs. This has happened in nearly every sector of the American economy, and now we all face a clear end as well. First, they will consolidate to only retain million dollar producers or billion dollar "teams." Then, soon enough, those guys get salary cuts too. This won't end unless the independents and RIA's lobby on their own behalf. There needs to be honest and fair competition in the industry. Once the smaller independents are out, the LPL's and Raymond James will start to increase fees as well. I hope you all see the writing on the wall. If you talk to any long term successful business owner, they will tell you one simple rule: when the government deregulates an industry, that's the time to get in, and when they regulate, or tighten, it's time to sell. Can we "Fight the Fed?"
(honestly, robo-advisors don't scare me, that's beside the point. The point is that the big money is trying everything they can to take away our living. Increased costs and regulation scare me.)
“These higher costs that all firms are experiencing providing financial services, whether you’re a bank or whether you’re a financial advice provider, accrue to the benefit of large, scaled players,” LPL CEO Mark Casady said in an earnings call Wednesday. “We’re obviously the largest in the independent broker/dealer space, and we’re now sizable in the RIA custody space, so we have the scale to withstand that cost increase.”