In the News

What Does First Allied’s New Parent Company Look Like?

18:21 30 June in In the News by rafferty

June 12, 2014 by Diana Britton, WealthManagement.com   Most people in the industry know Nick Schorsch, CEO of RCAP Holdings, as the head of non-traded REIT sponsor American Realty Capital, which has 51 percent market share in real estate direct investment and $10 billion in capital. So it came as a surprise to many when Schorsch announced his plans to acquire independent broker/dealer First Allied this morning. “It’s very surprising that it’s that type of firm buying [First Allied],” said Ryan Shanks, CEO and founder of Finetooth Consulting. Why would Schorsch and his four partners make such a big leap into the IBD space? Quite simply, he believes it’s a good investment and believes in the open architecture of the independent space. “We believe in diversifying our holdings,” he said, during a conference call with his...

Facing The Challenges

19:47 02 June in In the News by rafferty

June 2, 2014 by Dan Jamieson, Financial Advisor   Running a smaller broker-dealer wouldn’t seem to be a promising venture these days. Growing regulatory costs, low interest rates and fierce competition for advisors make the business a challenge for any size firm, especially those with limited resources. But small-firm executives say they can thrive by offering a level of personal service to independent advisors who detest the stifling bureaucracy of larger firms. Broker-dealers “all do pretty much the same thing—process the business,” says Susan Woltman Tietjen, chief executive at Girard Securities Inc., which has about 250 reps and $52 million in gross revenue. “For the reps, it comes down to how good the people are, the culture, the service and the experience they have. That’s how we distinguish ourselves from the big boys.” But small...

IBD Advisors Gripe About Fees

15:49 02 June in In the News by rafferty

May 30, 2014 by Diana Britton, WealthManagement.com   Nearly 37 percent of independent b/d reps agreed or strongly agreed that fees are becoming a bigger problem. Independent broker/dealer advisors are getting tired of fees, according to WealthManagement.com’s annual compensation survey. When asked if they agreed with the statement “Rising fees such as ticket charges, technology fee, etc., are becoming a bigger problem,” IBD advisors scored an average 3.1 on a scale of 1 to 5 (5 being “strongly agree”). That compares with the industry average of 2.6. Nearly 37 percent of IBD reps agreed or strongly agreed that fees are becoming a bigger problem. “I think that a lot of independent advisors may feel that firms are pulling different levers, and it’s kind of eating into their profit,” said Kenton Shirk, associate director at Cerulli...