Creating own B/D

2 replies [Last post]
piker's picture
Joined: 2007-05-21

This might be a rediculous question, but why do so many advisors go to an Indy B/D like RJF instead of just creating their own B/D-RIA?  This is an idea that I am currently considering in the next 2-3 years (not quite at the stage to pay someone to tell me about it, but soon enough).  Do you guys have any input on the process?  I am really looking to literally build my own company from the ground up.
Currently, I can think of administrative costs, legal fees, and litigation exposure being the foremost hurdles, am I fundamentally missing something?

anonymous's picture
Joined: 2005-09-29

Do you want to own a broker/dealer or do you want to be a broker/rep/advisor?
What are you trying to accomplish? 

Broker24's picture
Joined: 2006-10-12

Piker, I have a close relative that worked for NASD Regulations for 30
years. He is now a Security Compliance Consultant (helping small B/D's
set up compliance procedures, write their manuals, conduct annual AML
audits, respond to NASD Examinations, etc.). I spoke with him about this
very topic once. He said it is next to impossible these days without some
SERIOUS money and resources (you would need a sizeable staff to pull it
off). It is NOT like setting up your own RIA. Think about what you do as
an RIA, versus what your B/D does.

I can't give you many details, as I really never pursued it any further, but
those were his words.

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