In the News

DeWaay Financial closing its doors

16:58 13 November in In the News by rafferty

November 13, 2012 By Bruce Kelly, Investment News Broker-dealer known for troubled private placements files to deregister with SEC, Finra DeWaay Financial Network LLC is the latest broker-dealer to shut down because of the costly fallout of investor lawsuits stemming from high-risk private placements. The firm, which was known for its access to private deals, filed a form known as a “broker-dealer withdrawal” on Friday with the Financial Industry Regulatory Authority Inc., according to DeWaay’s profile on Finra's BrokerCheck. After filing a BDW, broker-dealers typically have two to three months to wind down their businesses. DeWaay Financial, based in Clive, Iowa, and owned by the formidable Iowa broker Donald DeWaay, is in a drawn-out battle with wealthy clients over failed real estate deals. DeWaay Financial built a large part of its reputation on selling alternative investments....

Are Independents Here to Stay?

16:51 09 October in In the News by rafferty

October 4, 2012 by Diana Britton, Wealth Management.com Recruiting into the independent broker/dealer channel has not materialized as people thought this year, but new research from Cogent says that may soon change. While recruiters say the number of breakaway brokers going independent has slowed down this year, defying expectations, the pace may pick up soon. Twenty two percent of advisors are considering a move in the next two years, according to a recent report by Cogent Research. Their top choices of where to land? LPL Financial (43 percent are likely to consider it) and Raymond James Financial Services (40 percent). Potential breakaways are also considering Wells Fargo Advisors (36 percent), Ameriprise (30 percent), and Morgan Stanley Smith Barney (28 percent). Aite Group predicted that 2012 would be a landmark year in breakaway volume as the golden handcuffs loosen at the wirehouses. But recruiters say that movement...

The New Velvet Rope? B/D Admissions Down Dramatically

15:30 27 August in In the News by rafferty

August 24, 2012 by Diana Britton, WealthManagement.com It’s become increasingly difficult for small broker/dealers to break into the business, as regulations increase. For the last few years, the independent broker/dealer community has been consumed by the blow-ups of problematic alternative investments, with many small firms simply throwing in the towel. But the velvet rope, so to speak, just got a little longer. With new regulations and compliance burdens, many small shops aren’t opening up new broker/dealers at all. According to a recent study by The Compliance Department Inc., a Centennial, Colo.-based firm that provides compliance outsourcing services to b/ds and investment advisors, the number of new broker/dealer admissions has dropped about 45 percent from last year. Only 18 new firms—with equities as their main line of business—registered with FINRA in the first six months of this year, compared to...