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‘Upfront Money Should Be a Spice, Not a Main Course’: Recruiter Jon Henschen

20:06 03 January in In the News by cristi.barkley@gmail.com

December 30, 2021, By Jane Wollman Rusoff ThinkAdvisor To a large extent, [broker-dealers] are just forgivable note peddlers. That’s their primary sales pitch when they talk to advisors — what we’ll give you if you move,” argues recruiter Jon Henschen, in an interview with ThinkAdvisor. “Upfront money should be a spice, not a main course,” says the founder of Henschen & Associates. “That should not be a primary motive for moving, by any means.” Henschen also has a strong view about BDs who mark up outside money managers’ fees, which are paid by the client. The advisors typically aren’t aware of “the manipulation,” he says. “Some of the firms are getting downright abusive in their markups. The broker-dealers certainly make things opaque and hidden,” he notes. Henschen opened his firm in 2001 and is nowadays...

FINRA’s New ‘Restricted Firm’ Plan is on it’s Way

14:22 10 September in In the News by cristi.barkley@gmail.com

September 8, 2021, By Melanie Waddell ThinkAdvisor Broker-dealers with a history of misconduct who have also hired a high percentage of brokers with a similar track record need to brush up on a new Financial Industry Regulatory Authority rule that seeks to expose potential risks to investors by labeling these broker-dealers as “restricted firms.” FINRA’s plan, approved by the Securities and Exchange Commission in late July, adopts Rule 4111, which uses criteria to decide whether to designate BDs as “restricted firms.” The rule becomes effective within 180 days of when FINRA issues a regulatory notice, which FINRA plans to do by the end of September. As part of the SEC approval, FINRA will propose amendments to Rule 8312 (FINRA BrokerCheck Disclosure), to provide information as to whether a particular member firm or former member...