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FINRA Plan to Rid BDs of Advisor Liability Would Hit Firms’ Fee Revenue

19:50 12 January in In the News by rafferty

January 12, 2018 By Melanie Waddell, ThinkAdvisor The plan would resolve BD complaints about paying large fines for RIA compliance failures, recruiter Jon Henschen says The Financial Industry Regulatory Authority plans to issue a proposal that would free broker-dealers from keeping track and maintaining liability for registered investment advisor business — a huge win for hybrid BDs — but they’d also be forced to take a hit to fee revenues. FINRA’s Board approved at its December meeting the publication of a regulatory notice seeking comment on changes to its rule on outside business activities that seeks to streamline BDs' obligations by “generally excluding from FINRA’s rule on a registered person’s personal investments and work performed on behalf of a firm’s affiliate,” and eliminate supervisory obligations for non-broker-dealer outside activities, including investment advisory activities at an unaffiliated third-party advisor. No...

With Pay Gap Shrinking, National, Regional B/Ds Surge

21:42 20 December in In the News by rafferty

December 20, 2017 Barron's National and regional broker-dealers out-grew the competition this year, in part by capitalizing on wirehouses’ recruiting pullback. The firms’ assets have climbed 9.1%, compared with 7.2% for the industry overall, according to Cerulli Associates. They’ve been emboldened to go after wirehouse advisors and their assets as the pay gap between the channels has shrunken. Culture is more than a buzzword, Cerulli’s research confirms: Of advisors who moved from a branch network firm in its survey, 75% rated culture as a moderate or major factor in their decision. Bureaucratic and impersonal cultures are a turnoff, the firm says. Also helping power nationals’ and regionals’ growth this year were European banks’ recent exits from U.S. wealth management, which loosed a flood of brokers into the recruiting market. ...

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The Herd vs. the Country Club: Which Mentality Is Right for You?

16:12 15 December in Articles Written by Jon Henschen by rafferty

December 15, 2017 By Jon Henschen as published on ThinkAdvisor The need to follow the crowd and the desire for exclusivity are both powerful motivators you can use to your advantage Since September 2017, we’ve experienced a substantial outflow of advisors from the Jackson National broker-dealers that were sold to LPL Financial via the National Planning Holdings acquisition. Industry publications announced regular movement to broker dealers, touting the group’s assets and discussing why they moved to whatever firm they had ultimately chosen. The herd mentality has been in full swing, as BDs and the press drew attention to which firms were the most successful in attracting advisors. In a perceptive move, even LPL joined in by publicizing the names of large groups that decided to go along with the sale and proceed with their...