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Small Producers at Advisor Group Won’t Get Retention Bonuses

21:09 07 August in In the News by rafferty

August 7, 2019 By Diana Britton, WealthManagement.com Details have emerged about the broker/dealer network’s retention packages, which include five-year lockups for advisors with over $600,000 in production—and nothing for sub-$250,000 producers. Diana Britton | Aug 07, 2019 Private equity firm Reverence Capital Partners completed its acquisition of independent broker/dealer network Advisor Group last Friday, and the firm has started to offer retention deals to some of the network’s 7,000 advisors. There are three components to what the firm is calling its Advisor Appreciation Program, the first being a cash award to all advisors with over $250,000 in production and who have been affiliated with Advisor Group for at least year at the close of the sale to Reverence, according to a source familiar with the program. Advisors with $250,000 to $300,000 in production will get...

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Broker-Dealers Go Courting

22:20 06 August in In the News by rafferty

August 1, 2019 By Eric Rasmussen, Financial Advisor Magazine The war for talent in the independent broker-dealer industry is real, say recruiters. Whether it’s giant firms like LPL cutting admin fees or midsize companies offering niche services like impact investing, the companies in this space are having to step up to offer better technology for their advisors, offer better back office help and better transition help. … And a nice payout isn’t bad either. “We’re about to see recruiting wars in the independent space like we’ve never seen before,” says consultant Jeff Nash, CEO of BridgeMark Strategies. “We absolutely are seeing new dollars. … Looking at all the institutional money coming into the space, it had to then kick off a whole new wave of recruiting dollars. And it has.” IBDs have been able...

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Small Producers Are Crazy, Large Producers Are Eccentric

18:48 02 August in Articles Written by Jon Henschen by rafferty

July 29, 2019 By Jon Henschen, WealthManagement.com You’ve probably heard the saying, “The poor are crazy, the rich just eccentric.” It originates from Ellen Raskin’s 1979 mystery novel, The Westing Game, and it addresses the view that the rich are granted a lot more leeway in their actions than the poor. The rich earn respect just by having money, while the poor are considered disposable and crazy. At the compliance level, the broker/dealer community lives this in spades. For example, when a $200,000 producer forges a signature, he’ll be terminated immediately, while a $2 million producer committing the same offense may see a $5,000 fine and a verbal slap on the wrist. Broker/dealers look at compliance disclosures on a risk-reward basis. Advisors with ample production can also have multiple Financial Industry Regulatory Authority (FINRA) disclosures, and...

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Highly Productive People: Which Political Systems Nurture Them, Which Crush Them?

19:03 29 July in Articles Written by Jon Henschen by rafferty

July 26, 2019 By Jon Henschen, Intellectual Takeout 50% of the work is done by the square root of the total number of people who participate in the work. With my background in financial services, recruiting financial advisors and financial planners, I see patterns in terms of productivity. A large percentage of advisors’ production falls between the $100,000 to $250,000 range. A much smaller percentage exceeds the norm, producing $1,000,000+ of fees and commissions. These select few with production over $1,000,000 are in demand because they are more profitable to the broker dealer. To attract the select few, a broker dealer will offer greater commissions, lower expenses and fees, and more transition money for a productive advisor to join his force. “Price’s Law,” which originated from British physicist, science historian, and information scientist Derek Price,...