The Decision to Own or Outsource a Broker-Dealer


SKU: KBRC-2022-DOOBB Categories: , , Tags: , ,


When firms begin to look at what drives profit contribution, they have found themselves in a catch-22, where they are less competitive in their technology platform relative to the competition, but making the technology investment needed to get to par would make the business even less desirable from a return perspective. Complicating that is making monetary investments in this environment when a clear and compelling risk/return tradeoff cannot be immediately demonstrated. When profit contribution, technology investments, and risk management are looked at together, the question of what the best growth model is becomes that much more complex. What factors should you consider when determining whether retaining your BD and utilizing a clearing firm or outsourcing to a TPM is the right model for your firm?

LPL Financial Institution Services commissioned Kehrer Bielan to detail the differences we see in the two models and what is most important to consider when making that decision.

This complimentary report highlights:

  • Technology, regulatory, and financial decision points between the two models, and;
  • The potential impacts to clients and advisors.