Regional BDs

The three recruits joined the independent firm from Wells Fargo and Edward Jones.

The firm is going for a middle-of-the-road approach that includes fee-based retirement accounts and which also relies on the best interest contract exemption with certain clients, says CEO Ron Kruszewski.

CEO Ron Kruszewski says market conditions and the fiduciary rule are dampening growth at the firm and throughout the industry.

The advisers made the move in the wake of new regulatory guidance which takes aim at recruiting deals.

Two industry veterans joined the fast growing regional brokerage firm.

"There are ways to potentially be cute with it. You could potentially cut out retirement business from the back-end bonuses," says an ex-Merrill Lynch executive who works in the independent space. "Cute doesn't usually work when it comes to regulators."

Here's why the firm needs greater name recognition that attracts advisers, according to recruiters.

How Ronald Kruszewski is working to make the regional BD into an industry contender.

"We fully expect to offer a range of options to help our clients," CEO Paul Reilly said.

CEO Jim Cracchiolo said the firm will still offer variety on its platform, but that it needs to make sure products are "appropriate for the client."