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Author: rafferty

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MetLife cutting annuity pay to some of its former advisers

02:17 07 September in In the News by rafferty

September 5, 2017 By Bruce Kelly, Investment News MetLife Inc. is cutting compensation on annuities sold by former advisers who moved to other broker-dealers after MetLife sold its Premier Client Group last year to Massachusetts Mutual Life Insurance Co. And the cut in pay is drastic. According to a memo from LPL Financial last week to the former MetLife Premier Client Group advisers who now work at LPL, asset based trail compensation rates will be reduced to approximately 27% of current levels. That means if an adviser received an upfront commission of 1% to 2% and an annual 100 basis point trailing commission after selling a variable annuity to a client, that annual trailing payment would be reduced to 27 basis points, or 0.27% of assets. The change could reduce some advisers' income by...

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Recruiting Speeds Up

20:05 31 August in In the News by rafferty

By Dan Jamieson August 2017 issue of Financial Advisor Magazine Recruiting activity among independent broker-dealers is regaining momentum now that the DOL rule is back on track. Many advisors have been evaluating their broker-dealer relationships in light of the new requirements the DOL will impose. Big firms like LPL Financial and Raymond James are changing their payout formulas in response to the rule and others are likely to follow. But independent broker-dealer execs say that some recruits in the pipeline held back on making decisions early in the year after President Trump ordered a review of the rule. That gave opponents of the DOL plan—including many B-Ds and independent reps—some hope that the rule would be indefinitely postponed. But the U.S. Labor Department ended up delaying the initial implementation for just 60 days, to June...

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For small B-Ds, becoming part of a branch office of a larger firm is a viable exit strategy

15:45 26 August in In the News by rafferty

August 25, 2017 By Bruce Kelly, Investment News Such deals allow them to get out from under the cost of running a broker-dealer, but preserves their brand and culture LPL Financial's acquisition this month of the National Planning Holdings Inc. network of four broker-dealers with 3,200 reps and advisers certainly has the independent broker-dealer industry abuzz, but transactions involving smaller broker-dealers are also of keen interest, as well as far more common. ​ At the start of the year, brokerage executives pointed to the potential for large firms buying small firms, which are struggling with compliance and technology costs, and absorbing them as branches called offices of supervisory jurisdiction, or OSJs. Two recent deals or mergers stand out. Royal Securities Co. of Grandville, Mich., a 17-person broker-dealer managing $1.1 billion in assets, in July said it...