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BD Deals: When Do Advisors Win, Lose?

23:36 03 November in Articles Written by Jon Henschen by rafferty

November 2, 2022 By Jon Henschen, ThinkAdvisor  When one broker-dealer is bought by another, advisors at the acquired firm hope for the best but wait for what will change. The acquiring broker-dealer will most always start off with a statement such as, “Everything will stay the same.” This may be the case for a month or two; over time, though, this statement often proves to be untrue. The size of the firm being sold and the size of the acquiring firm can make a big difference in the retention of advisors over the first two years. Potential points of conflict tend to be service, compliance and culture misalignment. Why BD Size Matters Here are the main merger scenarios and their likely outcomes: Small BD being sold to another small BD: very favorable to advisors/high retention; ...

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Are independent wealth managers that punish exiting financial advisors really independent?

12:53 02 November in In the News by rafferty

October 28, 2022 By Tobias Salinger, Financial Planning   Are independent wealth managers that punish exiting financial advisors really independent? After being diagnosed with a brain tumor, fighting in arbitration with a fellow advisor and their employer, Commonwealth Financial Network, and winning a $175,000 defamation award from the brokerage, financial advisor James “Jay” Womack said he spent nearly $200,000 on the legal case.   The cost was worth it, he said. Womack accused Commonwealth and the other advisor, with whom he worked closely, of collaborating to thwart a succession plan for his practice and taking over his book of clients. Commonwealth, Womack alleged in FINRA arbitration, defamed him by falsely telling his customers that he had made misrepresentations about the credit quality of bonds held by “an elderly client” and in a state unemployment benefits claim, along with...

Corporate Safety in Cities: Some Get it, Some Don’t

13:53 17 October in Articles Written by Jon Henschen by rafferty

October 14, 2022 By Jon Henschen, American Thinker Prior to the George Floyd incident, the thought of safety would rarely have occurred when executives visit a company as part of the vetting process for both sides. Clearly, the concern for safety has changed in many cities.  My wife and I use to do date nights to Minneapolis Uptown area on a monthly basis, but the George Floyd riots changed this part of Minneapolis permanently. Buildings are still boarded up and many of the restaurants we frequented are no longer around. The primary reason we now stay clear of many parts of Minneapolis is that we don’t feel safe.  Murder rates are at all-time historic highs and all other crimes are way up.  Historic police exodus in Minneapolis and other cities impacted by racial...

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Kestra Sells Minority to Private Equity Firm Oak Hill Capitol

13:30 10 October in In the News by rafferty

October 6, 2022 By Tobias Salinger, Financial Planning   An independent wealth manager that’s notching notable recruiting gains in an industry dominated by the giants picked up its latest private equity bet on the future growth of the firm. Kestra Holdings — the Austin, Texas-based parent company of wealth managers Kestra Financial and Grove Point Financial and their 2,400 financial advisors with $122 billion in client assets — added a new minority investor on Sept. 30 when Oak Hill Capital purchased the stake in the firm previously held by funds managed by Stone Point Capital. Firms once near to Kestra in size such as Signator Investors, Voya Financial Advisors and Waddell & Reed have merged into giants like Advisor Group, Cetera Financial Group and LPL Financial in recent years. In contrast, Kestra has built its own footprint steadily since the Stone Point...