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FINRA Floats Rule Changes on Gifts, Noncash Comp

19:31 10 August in In the News by rafferty

August 10, 2016 By Melanie Waddell, ThinkAdvisor   Among planned changes includes raising the gift limit from $100 to $175 The Financial Industry Regulatory Authority is seeking comments on its plan to amend its gifts, gratuities and noncash compensation rules. The proposed new rules, issued in Regulatory Notice 16-29, would raise the gift limit from $100 to $175, mostly to account for inflation, notes Cipperman Compliance Services. The new rules would also impose the noncash compensation restrictions on all securities transactions rather than just mutual funds, variable annuities, direct participation programs (DPPs) and public offerings. FINRA’s proposal would also replace previous guidance on business entertainment — allowing “ordinary and usual business entertainment” — with a requirement to implement policies and procedures ensuring no quid pro quos, defining permissible business entertainment, training and recordkeeping. FINRA is also proposing to incorporate...

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McGinnis Steps Down as CEO of Advisor Group

22:47 01 August in In the News by rafferty

August 1, 2016 By Janet Levaux, ThinkAdvisor   Valerie Brown will lead the group of IBDs as it moves from AIG to Lightyear Capital Erica McGinnis, who has led the Advisor Group for the past three years, is stepping down from the post. Executive Chairwoman Valerie Brown temporarily replace her as president and CEO, and Brown and McGinnis will work together as the Advisor Group moves from being a part of insurance giant AIG to being owned by the private-equity firm Lightyear Capital. "Erica McGinnis has accepted a role of executive vice president, head of transitions – leading the separation from AIG,” said spokesman Kevin Dinino, in a statement. “A search is underway for a new president and CEO … As president and CEO, Erica has contributed immeasurably to Advisor Group, and on behalf of...

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Is Private Equity IBDs’ Savior or Sorcerer?

20:28 01 August in Articles Written by Jon Henschen by rafferty

By Jon Henschen As featured in the August issue of Investment Advisor magazine   Private equity firms have increased purchasing activity of BDs, but it's a mixed bag for the firms being bought Several years ago, I attended a third-party recruiter gathering hosted by an insurance-owned broker-dealer that was working to attract advisors. During the day-long meetings, the president of this broker-dealer brought up private equity (PE) with a grimace on his face and proceeded to talk about it in terms of deep disdain. His narrative was that as recruiters, we should avoid PE-owned broker-dealers and instead funnel our candidates to the safety and stability of an insurance-owned broker-dealer. In a twist of fate, a PE firm now owns this broker-dealer. I have to assume that this BD president has done a 180-degree turn...

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DOL, SEC Fee Scrutiny Sparks Shift to Passive Investing

17:58 29 July in In the News by rafferty

July 28, 2016 By Melanie Waddell, ThinkAdvisor Use of passively managed funds and ETFs at indie BDs and wirehouses will accelerate, says Broadridge As regulators zero in on ensuring investors aren’t being soaked in fees, independent broker-dealers and wirehouses are abandoning actively managed funds and embracing passively managed ones and ETFs, according to new research by Broadridge. “During the first half of 2016, net new assets for passively managed mutual funds increased by $37 billion, or 14%, for the retail distribution channels, while actively managed funds were down by $24 billion, or 0.6%,” Frank Polefrone, senior  vice president of Broadridge’s data and analytics business, said Thursday in releasing results from the firm’s most recent Fund Distribution Intelligence research. During the first half of 2016, net new assets for passively managed funds and ETFs increased by 9% and 1%...