Hybrid Reps Not Held to Highest Standard of Conduct – Yet.

As the debate continues to rage within the financial industry over which professional standard of conduct financial advisors should be held to, a new report suggests that brokers are evolving faster than the rules themselves. According to a new study by securities industry watchdog, FINRA, the Financial Industry Regulatory Authority, the number of so-called "hybrid" brokers has exploded in recent years, now comprising 45% of all brokers. In this, the first ever snapshot of the industry's professional growth conducted by FINRA, the number of total broker-dealers has risen steadily over the past decade. Growth in hybrid reps, however, has easily outstripped growth in both of the discrete categories of broker and investment advisor.What Is a Hybrid Rep or Hybrid Broker?Traditionally, the financial industry has been separated into two distinct quarters, one belonging to stock brokers and financial advisors and the other to investment advisors. In very simple terms,…

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