Choosing a dealer is one of the most important considerations of managing your book. When you choose a dealer, you choose a partner.
Along with financial and compensation aspects, keep these other factors in mind when choosing a dealer:
- Evaluate how much support you want or need in running your business. Dealers can provide you with as much or as little back-office and support as you need.
- If you are going to become IIROC licensed, choose a dealer that operates dual platforms. That way, you'll have the flexibility to switch platforms.
- Evaluate the dealer's back-office system. Is it stable? Easy to use? Does it provide you with all the information you need to manage your clients?
- Evaluate the dealer's compliance and regulatory management. Ensure the dealer is proactive with regulatory changes, while still allowing advisors to operate independently within those regulations.
- If independence and personal branding are important to, choose a dealer who allows you that freedom.
- Choose a dealer who approves and licenses you for the types of products you wish to use.
- Determine the implications of leaving if you decide to change dealers at some point.
- Consider the reputation of the dealer and management. Since you are choosing a partner, their reputation becomes yours and vice versa.
- Ask your peers how satisfied they are with their dealers-peers can be an invaluable source of information.