Articles Written by Jon Henschen

Broker/Dealer Options with EIAs

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

by Jonathan Henschen, CFS and featured in ProducersWeb October, 2006: Since January, 2006, I’ve been caught in a whirlwind of activity centered on Equity-Indexed Annuities (EIAs). Advisor after advisor have contacted me looking for a broker/dealer that takes a friendlier approach to this area of their business that at one time, was not of any concern to broker/dealers. The debate swirling around EIAs is confusing and comes with widely varying opinions. One day I’ll be speaking with a broker/dealer who assures me EIA’s are going to be declared securities; the next day another broker/dealer will be just as confident that will never happen. From the broker/dealers’ perspective, I would think the reality of EIA’s becoming securities would make them cringe. If they were declared securities, they run the risk of all the previous...

Inquiring Minds Want to Know About Transition Money

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

by Jonathan Henschen, CFS and featured in Broker Dealer Journal August, 2006: A common question I get from the heads of broker/dealers is: “What do you see broker/dealers offering for transition help?”  I’m going to avoid interjecting too much personal opinion in this area, although I will say that going to a broker/dealer just looking for a forgivable loan is simply the wrong reason. Here’s a breakdown on what trends we see in the independent broker/dealer channel for helping out with transition expenses. Reps are on their own for transfer expenses At one time, if reps wanted to join a firm, they had to cover their own expenses including registration costs, business cards, stationary and transfer fees. Many firms still take that position, but the trend among broker/dealers is evolving to” “We need to...

Broker/Dealer Expenses

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

by Jonathan Henschen, CFS and featured in ProducersWeb July, 2006 We get deluged by questions about fees Advisors are paying, looking for references to what is normal for them to be paying on a particular expense imposed by their broker/dealer. To be certain, there are some firms that are not reasonable on what they charge; approaching ugly on the scale of what is fare to charge an Advisor. We’ve put together a list of common expenses incurred by Advisors by Independent Broker/Dealers as a reference to what is average in our industry and what the trends for these expenses are evolving toward. Errors & Omissions Insurance We’ve all seen a substantial spike up on E&O costs over the last four years. The good news is these costs are finally stabilizing, unless of course, your...