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Author: rafferty

ThinkAdvisor

Cetera’s Roth: RCAP Filing Is ‘Fresh Start,’ With Money for Rep Retention

14:54 29 March in In the News by rafferty

March 28, 2016

By James J. Green, ThinkAdvisor

 

RCS Capital Corp. (RCAPQ) announced Monday that some of the holding companies of its broker-dealers, and other debt holders, filed a prepackaged plan of reorganization under Chapter 11 with the U.S. Bankruptcy Court for the District of Delaware.

Larry Roth, CEO of the IBD network Cetera Financial Group, which RCAP purchased in January 2014 and includes 10 broker-dealers, said in a statement that the filing “puts us in the home stretch to complete our transformation into a Cetera-only organization that is independent, well-capitalized and privately owned.” He said the reorganization, now scheduled for completion by May 2016 (pending bankruptcy court, regulatory and other approvals) “will truly be a fresh start for Cetera that will include significant additional capital for us.”

That capital will help fund a retention program for eligible Cetera-affiliated advisors in the new Cetera-only company.

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ThinkAdvisor

LPL, Edward Jones Pre-DOL Rule Shifts: Smart Moves or Overreaction?

15:49 18 March in In the News by rafferty

March 7, 2016

By Janet Levaux, ThinkAdvisor

 

Industry watchers share their views on the merits and drawbacks of such an approach by several broker-dealers

The financial-services industry is holding its breath in anticipation of the Department of Labor’s new fiduciary standard. A couple players, though, have chosen to exhale and roll out pre-emptive programs.

LPL Financial (LPLA) announced Wednesday that it would cut prices and account minimums and launch a fund-only brokerage IRA option. And Edward Jones says it is in the pilot stage of a program to let clients with just $5,000 “get guided support.”

Do such moves make sense? Industry recruiters and consultants have mixed feelings, though at least one consumer group is pleased.

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investment advisor

How to Avoid Manager Absenteeism

16:50 02 March in Articles Written by Jon Henschen by rafferty

March 1, 2016

By Jon Henschen, as featured in March 2016 issue of Investment Advisor Magazine

 

Midsized broker-dealers are especially vulnerable as growth pulls managers in too many directions

In Jim Collins’ book “Good to Great,” he presents a concept he calls the Flywheel Effect. The Flywheel Effect illustrates that businesses are like a heavy flywheel. Management’s job is to get the flywheel moving as quickly as possible because its velocity generates superior results over time.

To get the flywheel to move from a standstill takes tremendous effort. With continuous hard pushing, the wheel starts to move slowly. Over time and with continuous pushing, the flywheel picks up momentum. You get to a point where the weight of the flywheel kicks in your favor.

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