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Author: rafferty

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Former AIG Executive Gruber Back in B-D Business

00:00 01 June in In the News by rafferty

by Bruce Kelly and featured in Investment News June, 2010: Joseph B. “Joby” Gruber, the former CEO of AIG broker-dealer FSC Securities Corp. who was forced to resign after Finra accused him of allowing an underling to take continuing-education exams in his name, is back in the independent broker-dealer business. After a two-year hiatus mandated by his non-compete agreement with American International Group Inc., Mr. Gruber, 51, has been hired by American Portfolios Financial Services Inc., a fast-growing broker-dealer that recently had success recruiting brokers from another AIG broker-dealer, SagePoint Financial. “Joby was very good with rep relations,” said Jonathan Henschen, an industry recruiter. “He brought strong continuity and stability to the firm.” Mr. Gruber will be president of national sales and marketing, and a ...

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Swell in 401(k) specialists’ seeking out ‘progressive’ broker-dealers

00:00 01 May in In the News by rafferty

by Darla Mercado and featured in Investment News May, 2010: Advisers lining up new home bases ahead of reg changes Advisers who specialize in the 401(k) market have been switching broker-dealers in search of firms they feel are better equipped to handle their growing business — and new government pension regulations. Proposed rules from the Labor Department, including heightened fee disclosures and restrictions on who can provide advice to plan participants, are placing additional regulatory scrutiny on advisers and brokers who work with retirement plans. Some major broker-dealers and wirehouses have started to accommodate advisers who want to be fiduciaries. Meanwhile, Goldman Sachs Group Inc. has entered the fray, promoting alternative-asset funds and designing target date funds that provide guaranteed income to grab a bigger piece of the $2.7 trillion 401(k) market. Nevertheless, recruiters say 401(k)...

How to Avoid Compliance Policies That Cater To the Lowest Denominator

00:00 01 May in Articles Written by Jon Henschen by rafferty

by Jonathan Henschen, CFS and featured in AdvisorBiz May, 2010: The past two years have been unlike anything I've seen since entering the financial services industry. Regulations have become increasingly labor-intensive, while broker-dealers are on the defensive; doing everything they can to shield themselves from the potential liability of their own advisors. Regulations in our industry are seldom black and white. Plenty of room has been left, for example, for broker-dealers to decide how advisors are supervised, or how marketing materials are approved, or the complexity of business paperwork. The ideal scenario is when advisors are with firms that do what financial services regulators require, but not much more. Problems arise, however, when broker-dealers experience certain triggers that end up making their advisors' lives much more difficult. Here are a few examples of those...