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STOCKBROKERS RELY MORE ON FEES, LESS ON TELEPHONE PROSPECTING

 STOCKBROKERS RELY MORE ON FEES, LESS ON TELEPHONE PROSPECTING
 IRVINE, Calif., Dec. 30 /PRNewswire/ -- America's stockbrokers are increasing their fee-based business and relying less on telephone "cold call" prospecting to find new business, according to a readership survey conducted by Registered Representative magazine, the trade journal for retail stockbrokers.
 The survey also revealed that today's brokers are a little older, less likely to be women and still troubled by poorly performing products.
 Survey results are based on 1,405 questionnaires completed and returned by readers of the August 1991 issue of Registered Representative magazine. Comparisons are based on similar studies conducted and published by the magazine in 1989 and 1990.
 Fourteen percent of respondents indicated they are compensated with "fees plus commissions," up from 6.3 percent in 1990 and 6 percent in 1989. Commissions from buying and selling investments still make up the bulk of brokers' business, with 69.1 percent relying on "commissions only," down slightly from 76.3 percent in 1990 and 76.5 percent in 1989.
 "More brokers are focusing on generating fee income from mutual fund 'trail' commissions and wrap accounts placed with professional money managers," said Dan Jamieson, editor of Registered Representative, noting that 64 percent indicated they would like to cultivate more fee-based accounts. Wrap accounts and some mutual fund accounts generate continuing broker commissions based on a percentage of assets under management.
 Brokers are relying less and less on telephone prospecting to find new business. Only 21.8 percent said it was "very" important to their business, down from 28 percent in 1990 and 31.9 percent in 1989.
 Just over a third (33.5 percent) said poorly performing products have had the worst effect on their business, followed by 24.3 percent who cited negative publicity.
 Today's brokers are older and more experienced. The percentage of brokers age 21 to 30 declined to 12.8 percent in 1991 from 18.3 percent in 1990 and 21.1 percent in 1989. The median age of brokers in 1991 was 42.3 years, up from 40.2 years in 1990. The median for years of experience was 10.7 in 1991, up from 9.3 years in 1990.
 "Brokerage firms have trimmed their sales forces and slowed hiring over the last several years," said Jamieson. "The result is an older, more experienced group of brokers."
 Women have continued to lose ground in the industry, and now represent only 10.1 percent of all brokers. That's down from 12.7 percent in 1990 and 13.6 percent in 1989.
 "As a group, women have fewer years of experience, and it's the newer brokers who have had the most difficult time in the slow business environment of the past few years," Jamieson said.
 Full results of the annual survey will appear in the January 1992 issue of Registered Representative.
 -0- 12/30/91
 /CONTACT: Dan Jamieson of Registered Representative, 714-851-2220/ CO: Registered Representative ST: California IN: PUB REA SU:


AL-SE -- LA002 -- 2776 12/30/91 08:00 EST
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Date:Dec 30, 1991
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