In the News

LPL Financial’s New Supervisory Rules Will Cost Reps

17:49 17 July in In the News by rafferty

July 16, 2012 by John Sullivan, Investment Advisor Magazine Recruiter Jon Henschen claims most firms cover supervisory cost, LPL does not LPL Financial (LPLA) announced on Monday that it is no longer allowing standalone reps to be their own supervisors (but they can keep their Series 24 and 26 licenses). Independent broker-dealer recruiter Jon Henschen, citing a LPL Financial registered rep, said that going forward, they will need to do one of the following: — Be under a multi-rep OSJ — Be supervised through the home office, which will cost an additional $4,800 per year — Be tied to one of their institutional affiliates (such as bank channel) Whether or not Henschen’s assessment proves accurate is far from settled. In June, the broker-dealer behemoth announced that its RIA platform reached $50 billion in assets under custody, nearly doubling its asset base...

First Allied Has New Owner

19:15 16 July in In the News by rafferty

July 2013 Janet Levaux, Research Magazine A group led by real estate investor Nicholas Schorsch is acquiring independent broker-dealer First Allied Securities from Lovell Minnick Partners “because we believe in the alternative space,” Schorsch said, in an interview. “We looked at First Allied’s business specifically for what it offers RCAP Holdings, not for distribution of product,” he said. “We sell so much …, have a 51% market share and have raised probably $4 billion this year … we do not need more advisors selling our products.” Schorsch is chairman and CEO of RCAP Holdings, which owns Realty Capital Securities, a wholesale broker-dealer and affiliate of American Realty Capital Properties, as well as several other entities. “It’s the opposite thinking from the idea that we want more distribution. First Allied is not a top-10 distribution...

LPL’s hiring of general counsel not a knee-jerk reaction to scrutiny, CEO says

17:31 25 June in In the News by rafferty

June 20, 2013 by Mark Schoeff Jr., Investment News Less than a month after getting hit with the largest Finra fine ever, LPL taps a former SEC official LPL Financial LLC has had several recent run-ins with regulators, but that's not the reason it hired a former Securities and Exchange Commission official as its top legal officer, according to the company's chief executive. David Bergers, former acting deputy director of the SEC's Division of Enforcement, will take over Aug. 5 as general counsel and managing director for legal and government relations at the firm's holding company, LPL Financial Holdings Inc. “We're looking for the best talent we can find,” said LPL chairman and chief executive Mark Casady. “In this case, it was someone who was at the SEC recently.” As general counsel for LPL's holding company, Mr. Bergers, 45,...