Author: rafferty

The Good, the Bad and the Ugly

03:46 19 August in In the News by rafferty

August, 2011 by Diana Britton and featured in RegisteredRep: The independent broker/dealer landscape is lately littered with tales of woe — scores of smaller firms have gone up in a puff of smoke over the past two years due to everything from troubled private placements to insufficient net capital. In February of this year, independent broker/dealer QA3 Financial announced it would close its doors following an arbitration related to Regulation D products. Just over a month later, at the end of April, Ameriprise Financial said it would be selling Securities America, its IBD arm, while the firm was in the middle of finalizing a settlement agreement with investors related to private placements. And at the beginning of June, it surfaced that Harrison Douglas, a small IBD of about 28 advisors, would be...

Securities America Sale: ‘Amazingly Low Price,’ Expert Says

03:33 19 August in In the News by rafferty

August, 2011 by Janet Levaux and featured in AdvisorOne: The news Wednesday that Ladenburg Thalmann is buying Securities America for what some call a bargain price, resolves some issues for the independent broker-dealer’s 1,700 advisors, but raises a good number of questions, as well, experts say. Most important, they note, is the need for aggressive retention packages and other steps to stem the tide departing advisors. For the deal, Ladenburg will pay $150 million in cash up front to Securities America parent company Ameriprise Financial and possibly more if certain performance targets are met by Securities America in 2012 and 2013; the deal is being financed by an affiliate of Dr. Phillip Frost, Ladenburg’s principal shareholder and chairman. Securities America should add about $450 million annual sales to Ladenburg’s results and up to $50...

SAI Sale to Ladenburg Mostly a Positive for Reps—Depends on Retention Packages

03:15 19 August in In the News by rafferty

August, 2011 by Diana Britton and featured in RegisteredRep: Ameriprise Financial’s (NYSE: AMP) sale of Securities America to Ladenburg Thalmann (AMEX: LTS), announced today, is mostly a positive for the firm’s rep base, industry sources said. But the size of the retention packages Ladenburg offers the reps will determine how many advisors stay. Back in late June, Registered Rep. was the first to write about Ladenburg as a potential buyer of Securities America. Larry Papike, founder of Cross-Search, said the deal finally gives a bit of stability to SAI reps, who have been in a dicey situation for months as they waited to hear what would happen to ownership of the broker/dealer. That stability derives not only from having a clear idea finally of who their new parent company will be, but also...