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Author: rafferty

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Why the U.S. Must Become an ‘Aspirational’ Society Once Again

17:28 22 October in Articles Written by Jon Henschen by rafferty

October 19, 2018 By Jon Henschen, Intellectual Takeout   When a society feels that the solution for poverty is for the poor to have the opportunity to become rich through hard work and self-improvement, you have an aspirational society. The United States could be classified by this term once upon a time, but in more recent years it has morphed into an envious society instead. Current aspirational societies include Hong Kong, Singapore, South Korea, Switzerland, and Chile. By contrast, France is a society consumed by envy. In France, it is all too common for neighbors to call authorities out of envy claiming their neighbor isn’t paying taxes because they installed a swimming pool or bought an expensive car. This envy stems from a mentality that the economy is a finite pie and inequality results if...

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The Dangers of Private Equity to Broker-Dealers and the Financial System

19:15 16 October in Articles Written by Jon Henschen by rafferty

October 15, 2018 By Jon Henschen, ThinkAdvisor Private equity firms continue to have substantial involvement in the independent channel as they fill the void left by insurance companies exiting the broker-dealer universe. Private-equity ownership can bring benefits to the advisor, but we also see moves by PE firms that are detrimental to the interests of broker-dealers’ advisors. Why are institutional investors attracted to private equity, and what lies ahead? Here’s what’s happened with private equity ownership, past and present: Past Private Equity Success As the chart shows, LPL is the only private-equity owned firm to go public, with management and larger producing advisors making millions from selling their stock ownership. For all the other PE-owned BDs, divesting was the exit strategy. NFP stood out as a particularly positive case of PE ownership, as staffing remained robust and...

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With Questar-Woodbury Deal, What’s Next for Insurance-Owned BDs?

22:11 12 October in In the News by rafferty

October 12, 2018 By Janet Levaux, ThinkAdvisor As Allianz Life Insurance moves to get out of the advisory business, it has struck a deal with Advisor Group-owned independent broker-dealer Woodbury Financial Services, which will get “preferred” treatment in recruiting 640 registered reps with Questar Capital. Woodbury has about 1,200 advisors and is based in Oakdale, Minnesota. The other Advisor Group IBDs are FSC Securities Corp., Royal Alliance Associates and SagePoint Financial. News of the Woodbury deal came as no surprise to some industry insiders. This summer, Royal Alliance said it was acquiring Signator Investors from John Hancock — a transaction that could double its size to as many as 3,600 financial advisors and other professionals. And a year ago this month, LPL Financial announcing its acquisition of four broker-dealers owned by Jackson National Life affiliate National Planning...