Author: rafferty

The New Velvet Rope? B/D Admissions Down Dramatically

15:30 27 August in In the News by rafferty

August 24, 2012 by Diana Britton, WealthManagement.com It’s become increasingly difficult for small broker/dealers to break into the business, as regulations increase. For the last few years, the independent broker/dealer community has been consumed by the blow-ups of problematic alternative investments, with many small firms simply throwing in the towel. But the velvet rope, so to speak, just got a little longer. With new regulations and compliance burdens, many small shops aren’t opening up new broker/dealers at all. According to a recent study by The Compliance Department Inc., a Centennial, Colo.-based firm that provides compliance outsourcing services to b/ds and investment advisors, the number of new broker/dealer admissions has dropped about 45 percent from last year. Only 18 new firms—with equities as their main line of business—registered with FINRA in the first six months of this year, compared to...

Woodbury reps set to cash in: recruiters

23:01 23 August in In the News by rafferty

August 23, 2012 by Bruce Kelly, Investment News Management to double down on bonuses for reps at former Hartford Financial B-D; 'world of difference' A number of Woodbury Financial Services reps and advisers will soon see a cash mini-bonanza. This comes after the announcement last month that the retirement business and broker-dealer arm of American International Group Inc. was buying the firm. According to industry recruiters, many of the 1,400 Woodbury reps have recently been approached by management to discuss deals commonly known as “stay” or retention packages. The terms are essentially a doubling of a stay bonus that many reps received in the spring, recruiters said. Giving reps stay bonuses while a broker-dealer was on the block was considered highly unusual at the time but also a smart way to keep brokers from leaving before a...

Another IBD-Seller of Private Placement Closes Up Shop

19:17 17 August in In the News by rafferty

August 13, 2012 by Diana Britton, WealthManagement.com Dallas-based Milkie/Ferguson, which sold Provident Royalties, has closed up shop and moved its 26 brokers over to Berthel Fisher & Company. Another independent broker/dealer that sold problematic private placements by Provident Royalties plans to close its doors, pending FINRA approval. Dallas, Texas-based Milkie/Ferguson Investments filed to have its registration with FINRA terminated July 26. The firm has signed a recruiting deal with Berthel Fisher & Company, an IBD based in Marion, Iowa, to transfer its 26 advisors and $450 million in assets to Berthel. Thomas Berthel, CEO and director of Berthel Fisher, confirmed the deal, first reported by WealthManagement.com. When you call Milkie/Ferguson’s main line, an automated message tells callers that all of the b/d’s operations have moved to Berthel Fisher and provides a contact number there. Milkie’s website also directs people to Berthel Fisher. Edward...