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The Downside Of B-D Counteroffers

14:54 16 February in Articles Written by Jon Henschen by rafferty

February 14, 2022 By Jon Henschen, FA Financial Advisor Advisors choose to leave broker-dealers for many reasons. It might be that they feel the culture of their firm is declining, that they’re getting poor back-office service quality and the response times are lagging. It could be that a firm’s heavy-handed response to compliance caters to the lowest denominator. Or it could be that the firms don’t give advisors access to more innovative advisory options—that their technology is pigeonholed. The list goes on and on. When it comes time to finally leave (after they’ve done due diligence on other firms), and they let their broker-dealer know, that’s when the company might come back with a counteroffer to stay. These offers aren’t common in the independent broker-dealer space, but they do happen, so you need to...

Why IBD’s Are Changing Their Recruiting Deals

14:53 11 February in In the News by rafferty

February 9, 2022 By Jeff Berman, ThinkAdvisor The shift that first LPL Financial and now Commonwealth Financial Network have made from production rates to asset levels when calculating transition assistance for recruited advisors makes sense based on the evolution of advisor books to an increased percentage of advisory assets, according to industry recruiters. The shift in strategy stands to also help IBDs trying to compete with RIA custodians and other IBDs for advisors, Louis Diamond, president of Diamond Consultants, said Monday. Similarly, Andy Tasnady, managing partner of Tasnady Associates, told ThinkAdvisor by email Monday that the moves by LPL and now Commonwealth “makes sense now that the retail investment world (and its revenues) are now fee-based rather than the older school transaction (trade) based.” After all, the “biggest revenue sources now are fees from managed...

Equal Opportunity or Equal Outcome?

01:39 25 January in Articles Written by Jon Henschen by rafferty

Only one will perpetuate peace and prosperity in the workplace.   January 21, 2022 By Jon Henschen, American Thinker The financial services industry has evolved on the topic of equality over the last five years. Five years ago, firms were encouraged to bring greater diversity and equality to the workplace.  Over time the message became increasingly urgent and instead of encouraging, industry writers started to guilt firms to speed up the process of back-office employees and advisors hired reflecting greater diversity and equality.  More recently the tone of articles has shifted to shaming firms that haven’t made enough "progress" in equality/diversity advances.  The shaming has been primarily focused on broker/dealers that are small and midsized vs. larger broker/dealers that these anointed ones believe progressed at a fast enough pace to not be shamed.  The...

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Commonwealth, LPL Now Using Asset Levels, Not Production Rates, to Calculate Recruiting Deals

23:11 24 January in In the News by rafferty

January 24, 2022 By Diana Britton, WealthManagement.com Commonwealth is now structuring its forgivable notes for new advisors as basis points on the advisors' assets, rather than their production—another sign it continues to see itself as a national RIA.   Waltham, Mass.-based independent broker/dealer Commonwealth Financial Network has confirmed that it recently shifted the way it structures the deals it gives prospects as an incentive to join the firm. It now offers forgivable notes based on an advisor’s asset levels, rather than a percentage of production, which has historically been the norm. A third party recruiter, who declined to be named, said the deals range from 30 to 35 basis points on assets. “Commonwealth remains at the forefront of where the industry is going, which we believe is toward assets versus production,” said Andrew Daniels, managing principal, business development. “As...