More than 300 small BDs expected to close by 2016


Due to costs of strict regulation requirements, 300 more broker-dealers are predicted to close by 2016, according to a statement by David Aslup, founder of Fishbowl Strategies. Costs cited by Aslup that would disproportionately affect small firms include, a salary for a full-time compliance officer, higher trading activity fees from FINRA, costs of filings for new firms and the costs of the CARDS initiative.

“If CARDS comes, there will be broker/dealers that just cannot make it,” Alsup said.

In 2014, 214 broker-dealers withdrew from FINRA and there were 254 withdrawals in 2013.

More here: