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Waddell & Reed sees ‘unprecedented change’ under new regime

20:33 05 December in In the News

December 5, 2017

By Tobias Salinger, FinancialPlanning.com

One of the oldest mutual fund companies in the country is transforming its independent broker-dealer with a new structure and a higher payout for advisors. At the same time, new leadership at the IBD remains intent on cutting costs and overall headcount.

On the day before Thanksgiving, suburban Kansas City-based Waddell & Reed Financial disclosed a series of changes to its executive ranks. Thomas Butch, its chief marketing officer and the longtime head of the firm’s IBD and wholesale channels, stepped down after 18 years with the firm.

Just a few days later, former Waddell & Reed CEO Henry Herrmann announced his retirement as chairman of the firm’s board. Current CEO Philip Sanders took over from Hermann last year as the firm struggled with outflows following portfolio manager Michael Avery’s retirement,

LPL Expects to Keep 70 Percent of NPH Advisors

16:27 13 November in In the News

November 8, 2017

By Diana Britton, WealthManagement.com

CEO Dan Arnold told investors he expects 70 percent of advisor production to move over in the first wave—but what is the bar for success?

LPL Financial is on track to retain 70 percent of advisor production from National Planning Holdings after transitioning the first wave of advisors from the acquired independent broker/dealer, the company said during a conference call Wednesday morning, even though CEO Dan Arnold told investors that the earnings the company would realize, measured by EBITDA, would equal 80 percent.

“Anytime you have a transaction, you’re putting potential assets in motion, it’s going to be a competitive environment,” Arnold said. “We also knew that this was a good quality property but that all advisors wouldn’t necessarily match up with us strategically.

Newbridge Securities to be bought by foreign wealth management firm

16:06 24 October in In the News

October 11. 2017

By Bruce Kelly, Investment News

London-based European Wealth Group is acquiring the U.S. independent broker-dealer, which has about 200 reps and advisers

Another independent broker-dealer is changing hands.

This time, Newbridge Securities Corp., a mid-size firm with about 200 reps and advisers, will be acquired by a foreign firm, the London-based European Wealth Group. The deal was announced jointly Tuesday.

Terms of the deal were not disclosed.

“We are ambitious to grow both organically and dynamically by acquisition,” said Marianne Ismail, CEO of European Wealth Group, in the announcement. “Newbridge presents a unique opportunity to invest in an established, well-positioned and nationally represented company.”

Newbridge reported $26.17 million of total revenue in 2016 and a net loss of nearly $488,000.