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Are Privately Owned Broker-Dealers a Dying Breed?

16:46 08 December in Articles Written by Jon Henschen by rafferty

December 2014 issue of Investment Advisor   Fewer privately owned broker-dealers leave those remaining in high demand With the recent sales of broker-dealers, have you noticed how many BDs in the top 50 are privately owned? This was the question posed to me by David Fischer, CMO of Independent Financial Group, a broker-dealer based in San Diego. Frankly, I hadn't thought about it. So I did some research. In 2008, there were 20 broker-dealers in the top 50 that were privately owned. Fast forward to 2014 and that number drops to 10, a 50% decrease. During our conversation, Fischer said that his group is loving the fact that his firm is part of a decreasing pool of privately owned broker-dealers because their recruiting has been on fire—they recently brought on a $1.5 million producer within...

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Cambridge Joins Ranks of IBDs Abandoning Schorsch

17:04 07 November in In the News by rafferty

November 6, 2014 Janet Levaux, ThinkAdvisor   The group stops sales of three Cole REITs following accounting and other issues at American Realty Capital Cambridge Investment Research has joined a growing number of independent broker-dealers suspending sales of REITs tied to American Realty Capital (ARCP). “Following a recommendation by our due diligence committee, and with the best interests of advisors in mind, we have temporarily suspended sales in three Cole products with the expectation there will be more clarity in the coming weeks,” the IBD said in a statement Thursday shared with ThinkAdvisor. Cambridge has some 2,500 affiliated independent reps. On Wednesday, Cetera Financial Group — part of RCS Capital, of which Nicholas Schorsch is chairman — asked its affiliated advisors to suspend sales of three Cole nontraded REITs. Other IBDs that have suspended these and other ARCP product...

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AIG’s Four B-Ds Suspend ARCP REIT Sales

20:52 04 November in In the News by rafferty

NOVEMBER 4, 2014 By Dan Jamieson, Financial Advisor    The AIG Advisor Group of broker-dealers has suspended the sale of two American Realty Capital REITs. “Due to recent disclosures of accounting irregularities made by American Realty Capital Properties, AIG Advisor Group has chosen to temporarily suspend sales in two Real Estate Investment Trusts (REITs) effective immediately,” said Advisor Group spokeswoman Linda Malamut in an e-mail. The products involved are the American Realty Capital New York City REIT, and the Phillips Edison-ARC Grocery Center REIT II. The four Advisor Group broker-dealers are Royal Alliance Associates,  FSC Securities Corp., Sagepoint Financial and Woodbury Financial Services. In total, the firms have more than 6,000 advisors. The problems at American Realty surfaced last Wednesday when the company said it had fired its chief financial officer and chief accounting officer and would restate...

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Spike in Finra, SEC regulation leaves star brokers exposed

16:59 27 October in In the News by rafferty

By Bruce  Kelly October 24, 2104, Investment News   Long treated with kid gloves, big producers now face questions about alleged violations Star financial advisers, the cocky big producers in the corner offices, have long been treated with kid gloves by management at brokerage firms. The financial advice industry, particularly the large securities houses, have an unspoken tradition of coddling their leading advisers, regardless of the ethics of some of their business practices. It's known in the financial advice industry that management typically will avert its gaze from potential indiscretions of star brokers; they produce too much in fees and commissions to risk antagonizing. Brokerage CEOs live in fear of star brokers getting annoyed after being asked too many questions by the geeks in compliance; the star could simply take his book of business out the...