In the News

Midsize Brokers Take On Big Guns With New – Creative Pay Packages

00:00 01 August in In the News by rafferty

by Bruce Kelly and featured in Investment News August, 2007: New York - In order to take on the big boys of the independent broker-dealer market, some growing middle-tier firms are offering souped-up compensation packages in place of or along with big upfront checks. The intriguing and aggressive aspect of the new compensation packages is that they are not simply upfront bonuses in the form of forgivable loans to reps and advisers, industry observers said. Instead, the packages stress reps’ ability to increase and maintain their books of business once they join a new firm. Firms with the new pay packages include First Allied Securities Inc. of San Diego, GunnAllen Financial Inc. of Tampa, Fla., and QA3 Financial Corp. of Omaha, Neb. Last year, First Allied reported $137.5 million in gross revenue, while GunnAllen...

Indie Reps Rewarded With Equity Participation

00:00 01 June in In the News by rafferty

by Bruce Kelly and featured in Investment News June, 2007: New York - In a bid to stand out among their peers and to be more competitive in the marketplace, an increasing number of small to midsize independent-contractor broker-dealers are offering sophisticated compensation plans, including stock ownership, to their affiliated registered representatives. The firms that have offered sweetened compensation most recently are Investors Capital Corp. of Lynnfield, Mass., and Girard Securities Inc. of San Diego. The two firms reported $76.8 million and $33 million, respectively, in gross revenue last year. They join the ranks of other such firms with sophisticated compensation plans, including American Portfolios Financial Services Inc. of Holbrook, N.Y., Cambridge Investment Research Inc. of Fairfield, Iowa, and NEXT Financial Group Inc. of Houston. Each of those firms has an equity participation plan. And...

LPL Deal Raises Questions

00:00 01 March in In the News by rafferty

by Bruce Kelly and featured in Investment News March, 2007: New York - LPL Financial Services Inc.’s plan to acquire three broker-dealers owned by Pacific Life Insurance Co. came as little surprise to many in the industry, though the deal has raised a few key questions, industry observers and advisers say. Terms of the deal, which was announced March 1, were not disclosed, but numerous broker-dealer executives want to know the price Linsco/Private Ledger Corp. paid for Mutual Service Corp. of West Palm Beach, Fla., Associated Financial Group of Los Angeles and Waterstone Financial Group of Itasca, Ill. Having that information would help them to better understand the market for — and valuations associated with — mergers and acquisitions involving independent-contractor broker-dealers. The second question is whether Linsco, based in San Diego and Boston,...