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Author: rafferty

John Hancock swims against the tide, doubles down on independent broker-dealer business

19:52 23 June in In the News by rafferty

June 23, 2016

By Bruce Kelly, Investment News  

 

Unlike many insurance companies who are fleeing the high-risk, thin-margin independent broker-dealer business, John Hancock Financial Network, through its independent broker-dealer, Signator Investors Inc., has doubled down on its commitment.

Signator in May closed on its deal to acquire 883 registered reps and advisers from Transamerica. Those former Transamerica advisers have $25 billion in client assets and Signator now has close to $50 billion in assets under management, according to Brian Heapps, John Hancock Financial Network’s president.

After cutting about 200 low producers and adding the former Transamerica advisers, Signator now has close to 2,200 advisers under its roof, almost double what it had before. The average production of its advisers has increased from $125,000 to $175,000 after these moves,

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ThinkAdvisor

Which Broker-Dealers Will Survive? Malcolm Gladwell Offers Some Answers

16:09 16 June in Articles Written by Jon Henschen by rafferty

June 16, 2016

By Jon Henschen, as featured on ThinkAdvisor

 

Determining the ideal elementary school class size has been a hotly debated topic for a number of years. The prevailing wisdom is that smaller is better. But is that always true? In his book “David and Goliath,” author Malcolm Gladwell uses the “Inverted U Curve Principle” to demonstrate the ideal class size.

I’d argue that the U Curve provides interesting insights into the ideal size for a broker-dealer, and suggests which BDs will survive in the current market and regulatory atmosphere.

But first, let’s explore Gladwell’s research.

Gladwell explains that there are three parts to the inverted U curve, and each part follows a different logic.

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What It All Means

23:10 02 June in In the News by rafferty

June 1, 2016

Dan Jamieson’s article explores the impact of the DOL’s final fiduciary rule, noting, “…it may not be the death knell of small broker-dealers, but no one in the industry thinks it will help the little guys (defined by Finra as those with fewer than 150 reps), who are already struggling from regulatory and cost pressures.

Recruiters say some of their prospects are leaning toward bigger firms, which are seen as better able to cope with the new regulation. “A lot of reps now definitely want a $100 million [in revenues] or larger B-D,” says recruiter Jon Henschen, of Henschen & Associates.

Read the full article on Financial Advisor.

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