Articles Written by Jon Henschen

10 Steps to Bulletproof Your Practice

December 2011
by Jonathan Henschen and featured in  Investment Advisor

If you find yourself in arbitration, following these steps can improve your chances of a decision in your favor

As a recruiting firm, we deal with compliance issues so frequently that, put in college terms, I majored in recruiting and minored in compliance. The last two years have seen regulators tightening the thumbscrews on broker-dealers and, in turn, advisors. There is little room for error in our industry today—what once might have caused a change of broker-dealer can now put you out of business. Couple this more stringent compliance environment with securities attorneys increasingly expanding their profit centers into our industry and you’re left feeling a bit paranoid.

If you ever find yourself needing to go to arbitration,

The Decline of Insurance-Owned Broker-Dealers

November, 2011
by Jon Henschen and featured in Investment Advisor

Conflicts of interest contributed to insurers’ loosening grip

From 1990 up until a few years ago, insurance companies dominated broker-dealer acquisitions in order to gain greater control over insurance product distribution. In case you haven’t noticed, there’s been a steady flow of insurance companies getting out of the broker-dealer business and focusing on their core business: insurance products.

Broker-Dealer Insurance Company Owner Sold To Vera Vest Securities Allmerica Life Insurance LPL WS Griffith Securities Phoenix Life Ins. LPL Walnut Street Securities General American Life MetLife Waterstone Securities Pacific Life Insurance LPL Mutual Service Corp. Pacific Life Insurance LPL Associated Securities Pacific Life Insurance LPL Jefferson Pilot Securities Jefferson Pilot Life Ins. Lincoln Financial Multi-Financial ING Lightyear Capital Financial Network ING Lightyear Capital Primevest ING Lightyear Capital Great American Securities Great American Life Ins.

Top Five Reasons Advisors Change Broker/Dealer

October, 2011
by Jon Henschen and featured in Investment Advisor

Culture shock is the top reason advisors look for a new BD

Several years ago I wrote about what motivates advisors to change their broker-dealer. Much has changed since then, so it’s time for an update. This time, rather than basing the reasons solely on our own recruiting experiences, we sought out the feedback of various broker-dealers for greater objectivity. Also, this review focuses on the perspective of advisors who are already at an independent broker-dealer and looking for a new one. We didn’t bring wirehouse advisors into the mix, as their criteria for change are somewhat more static and narrowly focused.

The Top Five Reasons Advisors Make a Move: Then

• Unhappiness with their current relationship
• Seeking better business support services
• Looking for better technology
• Need better product offerings
• Desire for higher/lower payouts

The Top Five Reasons Advisors Make a Move: Now

• Discontent with culture change
• Worn down by heavy-handed compliance
• Desire to net more
• Looking for greater service
• Wanting financial stability,