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Perinton-based Ensemble Financial Services Inc., the largest brokerage in the Rochester area, has added the broker-dealer business of Preferred Financial Group to its back-office portfolio.
Ensemble Financial is responsible for operational, trading and regulatory aspects of 10 Preferred Financial brokers, who have retained their business names and locations.
A subsidiary of Tompkins Financial Corp. in Ithaca, Ensemble Financial oversees some 100 local brokers, President Stephen Wershing said. It has a support staff of 13.
With the new Financial Industry Regulatory Authority guidelines, smaller firms can no longer afford the technology, research and support services in today's investment environment, Preferred Financial president Elliott Mibaum said.
"The new FINRA regulations have become so complex, a broker-dealer needs a full-time compliance department," he said. "We didn't have one and thought it would be good if we merged with a firm that did have one."
Patrice Lancelot, a financial adviser with Preferred Finanical, said compliance issues have become too time-consuming.
"Every time you pick up the paper, there's something else going on in the investment world regarding regulatory issues that you have to deal with," she said. "It was not something Elliott wanted to deal with any longer."
Lancelot, who has known Wershing for 15 years, contacted him about joining up with Ensemble Financial.
"It got rid of my...