Bradford broker TL Dallas has signalled its intention to form new partnerships with smaller regional brokers.

The broker said that as trading conditions remain tough, TL Dallas view expansion as a securer way for smaller brokers to grow their businesses.

TL Dallas said smaller brokers would benefit from its greater buying power while avoiding the risk of a takeover.

Managing director John Butterworth said: "The sector will come under the regulation of the FSA in 2004, which will involve increasing bureaucracy and stringent compliance requirements.

"Smaller brokers face crippling implementation costs and we encourage them to talk to TL Dallas, where we have the support to deliver on compliance and help drive their business forward."