$820M Indie BD Winds Down and Joins Cetera
HBW Partners, founded in 1991, is winding down its independent broker-dealer business, HBW Securities, and moving its 55 independent financial advisors over to Cetera Advisor Networks, according to the press release. HBW’s advisors currently oversee around $820 million, Cetera says. The firm will be a part of Cetera as a regional director-led company, according to the press release.
“Our transition to Cetera Advisor Networks enables us to keep the most-beloved features of our firm while eliminating the surging regulatory burdens associated with being a broker-dealer,” Barney Hellenbrand, CEO of HBW Partners, says in the press release. Tom Taylor, president of Cetera Advisor Networks, says in the press release that independent broker-dealers are joining Cetera to alleviate both the regulatory and the operational burdens while maintaining other aspects of their practice unchanged by transitioning to regional director-led companies.
The rate of consolidation in the indy broker-dealer space is likely to accelerate in light of the Department of Labor’s fiduciary rule, WealthManagement.com writes. The rule, which requires retirement account advisors to put clients’ interests first, went into partial effect June 9. Kovack Securities acquired a small broker-dealer in California in May and an indy broker-dealer associated with Security Bank of Kansas City was shuttered a week later, to become part of INVEST Financial Corporation, the publication writes.