Author: rafferty

SAI Sale to Ladenburg Mostly a Positive for Reps—Depends on Retention Packages

August, 2011
by Diana Britton and featured in RegisteredRep:

Ameriprise Financial’s (NYSE: AMP) sale of Securities America to Ladenburg Thalmann (AMEX: LTS), announced today, is mostly a positive for the firm’s rep base, industry sources said. But the size of the retention packages Ladenburg offers the reps will determine how many advisors stay. Back in late June, Registered Rep. was the first to write about Ladenburg as a potential buyer of Securities America.

Larry Papike, founder of Cross-Search, said the deal finally gives a bit of stability to SAI reps, who have been in a dicey situation for months as they waited to hear what would happen to ownership of the broker/dealer. That stability derives not only from having a clear idea finally of who their new parent company will be,

Securities America Settlement May Speed Up Its Sale

August, 2011
by Janet Levaux and featured in AdvisorOne:

The Dallas judge in the case of Billitteri vs. Securities America signed an order Thursday giving final approval of an $80 million class-action settlement over the sale of private placements of shares in Provident Royalties and Medical Capital—prompting some experts to conclude that parent company Ameriprise Financial would now have an easier time selling the embattled broker-dealer.

“We are very pleased to put this matter behind us,” said Janine Wertheim, president of Securities America Advisors, in a statement. “Although thousands of people and companies were harmed by the alleged fraud committed by the principals of Medical Capital and Provident Royalties, investors who purchased these programs through Securities America will receive a meaningful return of their investment in addition to any potential distributions from the receiver’s for these entities.”

Ameriprise said it put Securities America up for sale in April.

Hard Time for BDs on the Block to Find Suitors

August, 2011
by Janet Levaux and featured in AdvisorOne:

While rumors persist about possible suitors for Securities America, Morgan Keegan and other broker-dealers on the market, experts say the pool of buyers has shrunk dramatically over the past few years. For advisors, the longer the sales process take, the more likely it is that advisors will leave, they add.

Despite the poor market for broker dealers, the recruiter says Ladenburg Thalmann appears to be at the top of the list of potential suitors for Securities America, which has about 1,800 reps but some lingering legal issues surrounding its sale of private placements. Ladenburg Thalmann is the parent company of two independent broker-dealers: Triad Advisors in Norcross, Ga., with some 600 FAs, and Investacorp,