Articles Written by Jon Henschen

Six Broker-Dealer Red Flags

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

April, 2011 by Jonathan Henschen, CFS and featured in Advisorbiz.com: Five years ago the due diligence conducted on reps looking to join a broker dealer was more lax than what you see today. Pre-hire screening by broker dealers is more rigorous--even when it's just for the privilege of a home office visit. When you decide you want to join a firm, the background checks are much more in-depth and detailed. As Bob Dylan would say, "The times they are a changing" Here are six red flags to consider when thinking about changing broker dealer: Frequent broker dealer change history - It's one thing to have your firm sold out from under you or closed down. However, for those reps who stay at firms for one...

Cutting Through The Advisory Clutter

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

by Jonathan Henschen, CFS and featured in AdvisorBiz.com March, 2011: Our recruiting firm specializes in placing advisors with independent broker/dealers. My objective with this article is to clear up some of the confusion I've been hearing from my clients about the choices being tossed at wirehouse and regional-firm advisors these days--and why those choices may or may not always live up to reality!  Primary Motivations and Practice Valuation To begin with, it's important to understand why so many financial advisors at wirehouses or regional firms are choosing independence. The top four reasons are: 1. Monetizing the value of their practices 2. Owning and controlling their destinies 3. Marketing without excessive compliance burden 4. Higher payouts and commissions A compelling case for independence also comes from this data provided by the Tiburon CEO Summit...

Wirehouse Waste vs. Independent Broker-Dealer Efficiency

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

by Jonathan Henschen, CFS and featured in AdvisorBiz.com January, 2011: I received my introduction to the old school corporate structure through my father. After a long career as a partner with the accounting firm Price Waterhouse, dad finished his work life at Bethlehem Steel as one of their 11 vice presidents. The timeframe was 1978-1984, the declining years of Bethlehem Steel. Despite already decaying profits, the executive elite still lavished upon themselves as if the good times were still rolling. Here are a few examples: Corporate Excess at its Finest In some respects, Bethlehem Steel's Boys Club style of management was similar to the television show "Mad Men" with a hierarchy of ego driven males smoking oversized cigars. For example, All of Bethlehem Steel's upper management were members of the Saucon Valley Country Club,...