In the News

Another IBD-Seller of Private Placement Closes Up Shop

August 13, 2012
by Diana Britton, WealthManagement.com

Dallas-based Milkie/Ferguson, which sold Provident Royalties, has closed up shop and moved its 26 brokers over to Berthel Fisher & Company.

Another independent broker/dealer that sold problematic private placements by Provident Royalties plans to close its doors, pending FINRA approval. Dallas, Texas-based Milkie/Ferguson Investments filed to have its registration with FINRA terminated July 26. The firm has signed a recruiting deal with Berthel Fisher & Company, an IBD based in Marion, Iowa, to transfer its 26 advisors and $450 million in assets to Berthel.

Thomas Berthel, CEO and director of Berthel Fisher, confirmed the deal, first reported by WealthManagement.com. When you call Milkie/Ferguson’s main line, an automated message tells callers that all of the b/d’s operations have moved to Berthel Fisher and provides a contact number there.

Finra’s fee hikes will KO some smaller firms

July 30, 2012
Online Chatter, Investment News

“Richard Ketchum, the CEO of Finra, earns $2.25 million, and the top 10 executives at Finra earn a total of $10,466,750.  Finra has more executive vice presidents than the Obama administration has czars.  Why not pay for the expenses out of upper management’s inflated compensation or cut the excessive layers of management?” -Jonathan Henschen

 

AIG Emerges As Likely Acquirer of Woodbury

July 26, 2012
by Diana Britton, WealthManagement.com

While most insurance firms have been selling off their broker/dealer subsidiaries, AIG has reportedly emerged as the most likely buyer of Woodbury Financial Services. But reactions to the potential deal were mixed.

Insurance firms go through cycles of buying and selling broker/dealer businesses. They’re currently in a sell cycle; ING, Genworth and Western & Southern have all divested their b/d units.

But things may be turning: Woodbury Financial Services, owned by The Hartford, is on the block. One of the likey acquirers? Another insurance firm—AIG.

“The insurance-owned broker/dealers are getting thrown into this bag where everyone’s making these generalizations that they’re not as good and they’re all going to sell off eventually because we’ve seen that pattern,” said Jodie Papike,