The baby boomers' consolidation revolt

Tightening up on the anecdotal evidence that broker start-ups are on the increase was a frustrating experience, due partly because the Financial Services Authority was reluctant to part with the latest figures. The reason for this, said a spokesman, was because the regulator does not wish to give a blow-by-blow account, despite the trend actually answering early criticism that the regime could stifle entrepreneurialism - something that he was happy to concede.

Many guessed that consolidation would play a part in creating the entrepreneurs of tomorrow because - as larger firms emerge wearing one logo while struggling to contain several cultures - creative types would rage against this. However, it would seem this is happening now.

Trying to get a clear picture of the number of new ventures at present is not just difficult because the FSA lacks the resources or the will to conduct the analysis that would provide a definitive figure. The other factor muddying a clear picture of the number of brokers proper starting up is that of secondary intermediaries.

The FSA has been engaged in a sweeping up exercise to force those that thought they could stay below the radar to make a choice. Among the figures that are obtainable, which show the number of firms applying to be regulated, an indeterminable proportion of those are secondary intermediaries. However, by the time the regulator publishes its next annual report, probably in the spring, because straggling secondary intermediaries will have been forced to make a decision, these will form a lesser proportion affording a better view of an emerging trend.

If current indicators are representative, a sub-trend of brokers in their 50's starting up new firms should also become clearer. Despite running contrary to the stereotypical ideas of entrepreneurial types, this also seems to be a trend on the increase. Indeed, David Rasche, whose firm has observed a significant increase in demand from start-ups, was 50 when he left CSC for pastures new. The notion of an entrepreneur of a certain age is also interesting given the accepted wisdom that demographics is the real driving force behind consolidation. It would seem while you cannot teach an old dog new tricks there are plenty of old ones still sprightly enough to be up to their old tricks.