In the News

More Indie Brokers Bulk Up On Recruiters

by Bruce Kelly and featured in Investment News
February, 2006:

New York – Inspired by the tremendous growth of Linsco/Private Ledger Corp. and its ability to recruit brokers and advisers, a number of independent-contractor broker-dealers are following the industry pacesetter’s recruiting model by building staff in order to snag brokers. Linsco’s affiliated sales force has soared, reaching 6,454 registered brokers and advisers at the end of last year, up from 4,700 in 2003 – an increase of 37%.

The San Diego and Boston based company and its top executives reaped the rewards of that growth when it was valued at $2.5 billion in a sale of 60% of the broker-dealer to two private equity firms.

Now other independent-contractor broker-dealers apparently are taking a page from Linsco’s handbook and hiring regional recruiting staffs to troll for brokers.

Woodbury Draws Reps with ‘Human Touch’

by Bruce Kelly and featured in Investment News
January, 2006:

New York – One growing insurance-owned broker-dealer says that it is the human touch that keeps and attracts registered representatives.

The market is such that “with meaningful reps, they want to find a home and stay there,” said Brian Murphy, chief executive of Woodbury (Minn.) Financial Services Inc.

Since its parent, The Hartford (Conn.) Financial Services Group Inc., acquired broker-dealer Fortis Investments Inc. of Boston almost five years ago, Woodbury has grown at a rate of 15% annually, he said, reaching about $175 million in gross revenue last year.

The firm has nearly 2,100 affiliated registered reps and 200 employees. The reps hail from other independent-contractor firms, with several large-producing groups scheduled to join Woodbury this month,

Balancing Act

by Kathleen M. McBride and featured in Investment Advisor
January, 2006:

What a remarkable time these last few years have been for independent broker/dealers.The markets have recovered from a bubble, a crash, a grinding bear market, investment industry scandals, and corporate debacles. An aging population has realized that big corporate—or public—pension plans are, in many cases, gone or at least eviscerated, and that they generally are on their own, saving and investing for a long retirement.

Tremendous wealth has been created. Scads of investors have realized that they want need—advice about managing their money, whether from a local independent advisor or a representative of a wirehouse, bank, or insurance company.

Many of the challenges broker/dealers face are client-driven. Even many of the regulatory issues are,