Broker-Dealers
Insurors Are Dumping Broker-Dealers Based On Economic Factors And Conflicts Of Interest
The Hartford announced this week that it may sell off its broker-dealer, Woodbury Financial Services. This is being interpreted as fallout from lower interest rates and a more educated investing public about conflicts of interest. Large insurance companies have found it harder to make money on annuities with interest rates so low. They also are feeling the increased scrutiny about manufactures owning distribution channels for their products.
Talent Exodus From Large Firms Continues In 2012
The trend for advisors leaving large financial institutions to create their own businesses is accelerating in 2012. Independent firms such as LPL and Vanguard are making concerted efforts to attract teams and solid producers from the big houses. Independents are getting creative in the process, combining aspects of service and attracting advisors with hybrid models.
LPL has teamed up with Fidelity to offer such a model, an unusual step because firms traditionally compete against each other rather than combining forces. This is yet another development in the overall going-independent
Huge Exodus At Merrill Lynch May Bode Ill for BofA
Merrill Lynch advisors with significant client assets have been on a departing track to other firms, especially since September 2011. The other big three—Morgan Stanley, UBS, and Wells Fargo—have also lost advisors with significant assets but have largely managed to replace them with new hires. Not so for Merrill. Advisors seem to be taking advantage of a final guaranteed stock price package based on 2002 stock prices and are also rebelling against the bank’s strong encouragement to cross-sell services and products. They also may be feeling the capital crunch Bank of America
Raymond James Letting Morgan Keegan Reps Join As Either Employees Or Independent Reps
The logic must have been compelling: Raymond James has both an independent contractor side and an employee advisor operation. Why not let incoming Morgan Keegan reps pick?
UBS Raids Merrill Lynch For 14 Advisors And $2 Billion In AUM
The Swiss have placed a rich bounty on Merrill Lynch advisors and their willingness to pay up to 180% of annual production seem to be paying out handsomely.
