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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,

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,

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After LPL deal, $1.3B National Planning firm bolts for Commonwealth

16:53 19 October in In the News

October 19, 2017

By Tobias Salinger, FinancialPlanning

A father-son firm managing $1.3 billion in client assets opted for Commonwealth Financial Network rather than remaining with National Planning through the transition of its advisors to LPL Financial.

Stuart and Michael Paris of Paris International “would have never left” National Planning if the firm’s assets had not changed hands in LPL’s big recent acquisition, Michael Paris said this week. The Great Neck, New York-based firm chose the fourth largest independent broker-dealer over the largest one.

LPL’s Aug. 15 purchase boosted its own prospects while helping recruiting efforts for its competitors. The boutique-like model of Commonwealth stands as an alternative to increasingly large firms like LPL in the bifurcating IBD space, a study found earlier this month.

MetLife Slashes Annuity Pay to Former Advisors

15:58 17 September in In the News


September 17, 2017

MetLife is taking a hatchet to compensation on annuities sold by former advisors who went to other broker-dealers in the wake of MetLife’s sale of its Premier Client Group to Massachusetts Mutual Life Insurance, InvestmentNews reports.

The publication cites a memo LPL Financial sent last week to its advisors who previously worked in MetLife’s Premier Client Group. The memo informs them that asset-based trail compensation rates will shrink to about 27% of current levels, InvestmentNews writes.

For example, an advisor receiving a 100 basis-point trailing commission will see it reduced to 27 basis points, or just .27 percent of assets, the publication says. The change kicks in after markets close Friday and will affect five variable annuity contracts and 11 fixed annuity contracts.