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In the News


FINRA Plan to Rid BDs of Advisor Liability Would Hit Firms’ Fee Revenue

19:50 12 January in In the News

January 12, 2018

By Melanie Waddell, ThinkAdvisor

The plan would resolve BD complaints about paying large fines for RIA compliance failures, recruiter Jon Henschen says

The Financial Industry Regulatory Authority plans to issue a proposal that would free broker-dealers from keeping track and maintaining liability for registered investment advisor business — a huge win for hybrid BDs — but they’d also be forced to take a hit to fee revenues.

FINRA’s Board approved at its December meeting the publication of a regulatory notice seeking comment on changes to its rule on outside business activities that seeks to streamline BDs’ obligations by “generally excluding from FINRA’s rule on a registered person’s personal investments and work performed on behalf of a firm’s affiliate,” and eliminate supervisory obligations for non-broker-dealer outside activities,

With Pay Gap Shrinking, National, Regional B/Ds Surge

21:42 20 December in In the News

December 20, 2017


National and regional broker-dealers out-grew the competition this year, in part by capitalizing on wirehouses’ recruiting pullback.

The firms’ assets have climbed 9.1%, compared with 7.2% for the industry overall, according to Cerulli Associates. They’ve been emboldened to go after wirehouse advisors and their assets as the pay gap between the channels has shrunken.

Culture is more than a buzzword, Cerulli’s research confirms: Of advisors who moved from a branch network firm in its survey, 75% rated culture as a moderate or major factor in their decision. Bureaucratic and impersonal cultures are a turnoff, the firm says.

Also helping power nationals’ and regionals’ growth this year were European banks’ recent exits from U.S. wealth management,

LPL Wields Major, if Unglamorous, Recruiting Advantage

20:39 05 December in In the News

December 5, 2017

LPL Financial is beating back rivals to lock up billion-dollar practices at the National Planning Holdings units it recently bought. And while incentive money, culture and scale are always factors in these recruiting battles, LPL wields an ace card: A relatively easy transition.

Last week, $1.1-billion Discovery Financial Centers, in Red Wing, Minn., waved off outside suitors and agreed to move to LPL. In October, $2-billion Trilogy Financial, in Huntington Beach, Calif., announced it would join LPL. And LPL plans by the end of the month to announce deals with additional billion-dollar firms, according to Financial Planning.

These businesses belonged to some of the four broker-dealers whose assets LPL acquired in August. LPL chief Dan Arnold has projected that his firm will hang on to about 70% of the four B-Ds’ production in an initial transition wave.