In the News

What hurt LPL’s recruiting recently? Old Man Winter

March 7, 2014, By Bruce Kelly,  Investment News

LPL Financial has suffered a recruiting slowdown in the first quarter and puts part of the blame on an unusual factor — this winter’s rough weather.

In an investor presentation posted on the company’s website Thursday, LPL said that its “adviser pipeline for 2014 remains healthy but [first-quarter] momentum slowed in part due to disruptive weather.”

Net new financial adviser growth has also been influenced by the departure of a bank with 40 registered representatives and advisers, according to the presentation, which was made at the Bernstein Financials Summit Conference in Boston.

Along with bad weather, broad stock market volatility also had a negative impact on LPL’s recruiting in the first quarter,

What’s Next For Nick Schorsch?

By Dan Jamieson

March 3, 2014,Financial Advisor

The industry is watching intently as the firm Schorsch controls, RCS Capital Corp., begins the arduous task of putting together what will be one of the biggest players among independents—with more than 9,000 advisors and around $200 billion of client assets.

Publicly traded RCS Capital (RCAP) boldly staked its claim as a major independent firm in January when it agreed to buy Cetera Financial Group with its nearly 6,700 advisors and $145 billion in client assets, quickly followed by another deal, for J.P. Turner ($4.3 billion in assets and 325 advisors). Those acquisitions followed earlier purchases of First Allied Securities,

Schorsch’s RCS Capital moves to keep its 9,000 registered reps in the fold

February 19, 2014, By Bruce Kelly, Investment News

In a highly anticipated move, RCS Capital Corp. said that it intends to create a retention package for the 9,000 registered representatives and investment advisers, many of whom it has inherited from a series of acquisitions.

RCS Capital and related entities have been on a buying binge of broker-dealers over the past seven months, completing one acquisition while four others are pending and on track to close by midyear. Such broker-dealer acquisitions can prove highly sensitive and contentious as reps and advisers question the new ownership.

It is customary to offer reps and advisers some sort of compensation for them to stay on the job for a number of years.