In the News

So why did Schwab X out brokersXpress?

23:17 17 May in In the News by rafferty

May 17,2012 by Bruce Kelly, Investment News Some 325 brokers and registered investment advisers are hustling to find new homes in the wake of The Charles Schwab Corp.'s announcement last week that it is closing down brokersXpress LLC, an independent broker-dealer for reps and advisers who trade options. “This was not a cost cutting effort,” said Schwab spokeswoman Susan Forman. “It was more of a philosophical decision.” The company will focus on fee-based RIAs who use its custodian group, Schwab Advisor Services, rather than on brokers who charge a commission for trades, Ms. Forman said. Schwab bought optionsXpress Holdings Inc. last year for about $1 billion; brokersXpress was part of that deal. Ms. Forman said the purpose of that acquisition was to enhance Schwab's options and derivatives offering for retail clients. She called brokersXpress “an extra, if...

Jon Henschen: The 2012 IA 25 Extended Profile

23:22 16 May in In the News by rafferty

May 7, 2012 by Danielle Andrus, AdvisorOne Jon Henschen, president of Henschen & Associates, a broker-dealer recruiting firm, likens the torrent of regulatory changes the industry has seen recently to “having a cut on your finger, and they’re cutting your arm off to repair it.” Henschen has more than 20 years in the industry, and his insights into the independent broker-dealer channel have been published by no less an authority than Bloomberg, The Wall Street Journal and (full disclosure) Investment Advisor. While the Dodd-Frank Act’s effect was largely felt by wirehouses and big banks, the independent channel hasn’t escaped increased bureaucracy that, Henschen says, is “grinding down the business.” For example, “the ‘know your customer’ rule allows broker-dealers to take a risk-based approach to implementing new suitability factors, but it’s doubtful that broker-dealers and regulators will see...

Could Allianz Chief Buy Old Firm?

16:07 23 April in In the News by rafferty

by Jim Hammerand and featured in Minneapolis/St. Paul Business Journal April 20, 2012 It could be a coincidence that Walter White has become CEO of Allianz Life Insurance Co. of North America while Woodbury Financial Services Inc., the securities broker/dealer he helped build, looks for a new owner. Or it could be fate. Industry observers see Golden Valley-based Allianz as a likely buyer of Woodbury Financial. However, in his first interview as Allianz’s chief executive, White carefully considered his words when asked whether his firm should — or would — acquire the Twin Cities’ third-largest broker/dealer by revenue. “I obviously have an affinity for Woodbury. It’s a quality firm. I have no doubt they will find a buyer,” he said. He also discussed his time at Woodbury Financial, the challenges now before him, and the future of...