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In the News

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If Finra eases firm oversight of outside business activities, broker-dealers could lose revenue

21:23 16 February in In the News by rafferty

February 15, 2018  By Mark Schoeff Jr. Investment News A pending Finra proposal to ease the requirement that brokerages supervise their representatives' work with unaffiliated registered investment advisers sounds like regulatory relief. But some brokerages are worried about the price for losing oversight of outside business activities. Monitoring an unrelated third-party adviser can be a hassle, but it also means broker-dealers can take a cut of their affiliates' RIA revenue, usually about 5%. The Financial Industry Regulatory Authority Inc. board advanced the proposal at its December meeting, but the agency has not yet released a rule proposal. Depending how it's written, obviating the need to supervise RIA work also eliminates the need to charge for that service. As more hybrid advisers shift from commission-based revenue to fee-based revenue, IBDs are eager to capture some of...

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Ron Carson openly poaches LPL advisors, seducing them with new tech

21:47 08 February in In the News by rafferty

February 8, 2018 By Ann Marsh, Tobias Salinger, Financial Planning In a risky recruiting strategy that could invite lawsuits, advisor Ron Carson is openly trying to lure advisors away from LPL Financial, the largest U.S. independent broker-dealer. His sales pitch includes a nationwide speaking tour, in which he tempts advisors with a new, streamlined technology platform. For more than 20 years, Carson had been LPL's top producer, but he left in early 2017 to join another large IBD, Cetera Financial Group. Now, he has crafted a personal appeal to entice other LPL planners to follow suit. He started delivering the message at the first of 13 day-long advisor workshops planned to take place around the country. "I can't tell you how great it is to talk to you, fellow LPL-ers. I've missed you," Carson says in...

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Finra Warns B-Ds On Hiring Brokers With Spotty Records Living Large

16:57 22 January in In the News by rafferty

January 22, 2018 By Tracey Longo, Financial Advisor High-risk reps are finding it much harder to find a job these days, as Finra tightens the proverbial screws on firms that employ brokers with regulatory red flags. The Financial Industry Regulatory Authority has even begun calling firms that hire “high-risk” brokers to ask executives for explicit justifications for the hires. The threat made to firms, no longer even thinly disguised, is that hiring risky brokers will result in more frequent and far more rigorous Finra examinations for the B-D. The scrutiny is making it far tougher for any but the most profitable brokers to find a new firm if their regulatory record and background check puts them in Finra’s high-risk program hairs. If a firm runs the regulatory gauntlet and brings on a high-risk broker anyway,...