Small stockbrokers benefit from big banks’ failure

Smaller stockbrokers are winning more clients as a result of the economic downturn, the Sunday Times reported this week.

According to research seen by The Times, larger stockbrokers such as Dresdner Kleinwort and UBS are losing clients to smaller rivals such as Collins Stewart and Cenkos.

UBS, for example, has lost more than 20% of its corporate clients in the past 12 months, whilst clients of Teathers are fleeing as quickly as possible after its owner, Straumur Burdaras, was effectively nationalised by the Icelandic Government.

Panmure Gordon, which has operated for 130 years, also suffered a big fall in client numbers.

Smaller companies such as Cenkos are celebrating as their business has picked up markedly.

Andy Stewart of Cenkos told the Times that the demise of investment banks has been a ‘major benefit’ to his company.

He added that clients are looking for a personal service, which is often not available with larger stockbrokers.

The number of Collins Stewart’s clients on the Alternative Investment Market has decreased, whilst the number of clients with full listings has risen.

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