Third party broker dealers are bringing home the bacon for the banks and credit unions they support. During 2012, the 12 largest bank broker dealers, or third party marketers as theyre dubbed in the industry, boosted their revenue by 8% to more than $1.5 billion, marking their fourth consecutive year of revenue increases, according to the 2012-2013 Kehrer Saltzman TPM Survey, released Tuesday.
Most of the revenue went to the financial institutions the TPMs support, said Kenneth Kehrer, a principal of Kehrer Saltzman & Associates.
LPL led the third party marketers on all fronts, producing the largest share of revenue and supporting more financial institutions and advisors than its rivals. The Financial Institutions Division of Raymond James Financial ranked second in revenue produced through financial institutions and in the number of financial advisors placed in banks and credit unions. Cetera Financial Institutions, formerly PrimeVest Financial, was second in the number of financial institutions served.
Several gained ground on their competitors. In 2012, LPL, Investment Centers of America, Investment Professionals and Invest Financial all increased their market share in terms of the number of financial institutions served. And Raymond James, CUSO Financial Services, CUNA Brokerage Services, Invest and Investment Professionals increased their share of the number of advisors working in the institutions they served.
The survey, conducted annually since 2006, covers more than 90% of the banks and credit unions that use TPMs, according to Kehrer Saltzman.