Articles Written by Jon Henschen

The Pros and Cons of Independent B/D Styles

by Jonathan Henschen, CFS and featured in ProducersWeb
November, 2006:

It would be delusional to think a single broker/dealer can meet the needs of all advisors. Because we see such vastly differing needs among advisors, it’s fortunate there is such a wide variety…Following is a list of nine different styles of independent broker/dealers — along with the upsides and downsides of their business models.

• Small B/Ds — Fewer than 200 advisors
• Medium B/Ds — 200 to 800 advisors
• Large B/Ds — 800+ advisors
• Insurance/Bank BDs
• Stock, bond and institutional BDs
• Advisory focus B/Ds
• Alternative investment focus B/Ds
• Equity participation focus B/Ds
• Marketing and practice management B/Ds
• Small B/Ds — Fewer than 200 advisors

By far the most appealing qualities of small firms are flexibility and personal attention.

Broker/Dealer Options with EIAs

by Jonathan Henschen, CFS and featured in ProducersWeb
October, 2006:

Since January, 2006, I’ve been caught in a whirlwind of activity centered on Equity-Indexed Annuities (EIAs). Advisor after advisor have contacted me looking for a broker/dealer that takes a friendlier approach to this area of their business that at one time, was not of any concern to broker/dealers.

The debate swirling around EIAs is confusing and comes with widely varying opinions. One day I’ll be speaking with a broker/dealer who assures me EIA’s are going to be declared securities; the next day another broker/dealer will be just as confident that will never happen. From the broker/dealers’ perspective, I would think the reality of EIA’s becoming securities would make them cringe. If they were declared securities,

Inquiring Minds Want to Know About Transition Money

by Jonathan Henschen, CFS and featured in Broker Dealer Journal
August, 2006:

A common question I get from the heads of broker/dealers is: “What do you see broker/dealers offering for transition help?”  I’m going to avoid interjecting too much personal opinion in this area, although I will say that going to a broker/dealer just looking for a forgivable loan is simply the wrong reason. Here’s a breakdown on what trends we see in the independent broker/dealer channel for helping out with transition expenses.

At one time, if reps wanted to join a firm, they had to cover their own expenses including registration costs, business cards, stationary and transfer fees. Many firms still take that position,