by John Sullivan data compiled by Liana Roberts

Transcription

1 by John Sullivan data compiled by Liana Roberts Europe, regulation, margin squeeze, market volatility, succession planning and oh yes, the day-to-day pressures of running a business. We tick the list off so often, it s getting a bit cliché. But as with last year, we re not much further along in figuring out these issues. Lawsuits related to Medical Capital and other poorly thought-out products spelled trouble for certain brokerdealers last year, and a few shut their doors entirely. The field is a little less crowded, but for those doing it right, the confusion spells opportunity. With all that in mind, which broker-dealers are thriving, which are merely surviving and which are shutting their doors? We present the 202 Broker-Dealer Reference Guide, a review of the top BDs in each major category to help you sort it all out and ensure a lasting and profitable relationship for you and your clients. 74 Investment Advisor June 20 AdvisorOne.com June 20 Investment Advisor 75

2 When we asked about the issues broker-dealer presidents feel are the most challenging to their business, over half of respondents replied with margin squeeze, more than triple the next answer, which was (once again) keeping technology up to date. It s a perennial problem and one that shows little promise of being solved anytime soon (at least not until boomer retirement is in full swing). by annual revenue avg. BD gross BD total fee-based Concession revenue expenses revenue per rep RANK Company ($ mil.) ($ mil.) ($ mil.) ($ Thous.) LPL Financial LLC $3,340.0 $2,950.0 $,00.0 $ Raymond James Financial Services $,80.0 $,060.0 $4.6 $ Commonwealth Financial Network $646.5 NA $336.6 $ AXA Advisors LLC $573.0 NA $86.0 $3.0 5 MetLife Securities $542.7 NA $58.8 NA 6 Northwestern Mutual $50. NA $95.4 $ Securities America Inc. $444.3 NA $85.7 $ Cambridge Investment Research Inc. $396.9 $373.8 $22.3 $ Royal Alliance Associates $395.8 NA $5.7 $ NFP Advisor Service Group (And Affiliates) $369.2 NA $94.4 $274.5 National Planning Corporation (NPC) $335.9 $33.2 $76.2 $ Waddell & Reed Inc. $330.7 $35.5 $9.4 $ Financial Network Investment Corporation $32.7 $346.8 $.6 $ Securian Financial Services $282.5 NA $50.4 $9.9 5 FSC Securities Corporation $263.9 NA $87.6 $ Woodbury Financial Services Inc. $253.9 $253.9 $27.9 $ New England Securities $253.9 NA $47.8 NA 8 H.D. Vest Financial Services $244.0 NA $80.5 NA 9 First Allied Securities Inc. $24.0 $235.6 $70.7 $ SagePoint Financial $235.6 NA $57.8 $ Princor Financial Services $229.4 $220.6 $27.5 $ INVEST Financial Corporation $27.3 $24.4 $37.6 $ Transamerica Financial Advisors Inc. $59.9 NA $30.4 $ Signator Investors Inc. $58. $54.0 $29. $ SII Investments Inc. $5.2 $48.3 $35.9 $ Investment Advisor June 20 AdvisorOne.com

3 As Raymond James Mike Di Girolamo recently told us, most firms saw a slowdown in recruiting at the beginning of 20, but that rebounded tremendously as we moved further into the year. Will that be the case in 202? We re seeing the most interest come from large wirehouse reps and also from employees in regionally based firms, Di Girolamo said. They ve been on the sidelines, but now the pain points are hurting enough for them to make the move. by number of reps reps reps firm's producing added dropped years in RANK Company reps in 20 in 20 business LPL Financial LLC 2,847 NA NA 44 2 Northwestern Mutual 5,776 NA NA 44 3 MetLife Securities 5,98,262, H.D. Vest Financial Services 4, Transamerica Financial Advisors Inc. 4, NA 28 6 AXA Advisors LLC 4, Raymond James Financial Services 3, Cambridge Investment Research Inc. 2, New England Securities 2, Financial Network Investment Corporation 2, Princor Financial Services, Royal Alliance Associates, Genworth Financial Investment Services,663 NA NA NA 4 Signator Investors Inc., SagePoint Financial, Securities America Inc.,555 NA NA 28 7 PrimeVest Financial Services, Woodbury Financial Services Inc., National Planning Corporation (NPC), Commonwealth Financial Network, NFP Advisor Service Group (And Affiliates), Ameritas Investment Corp., Waddell & Reed Inc., INVEST Financial Corporation, Multi-Financial Securities Corporation, Investment Advisor June 20 AdvisorOne.com

4 Once again, diversification is the word of the day (decade), not just for the client s portfolio, but for advisor revenue streams. The wirehouse exodus may have some effect in this category this year. Chip Roame told us for this year s IA 25 (see The 202 IA 25, Investment Advisor, May 202) that the overall number of breakaway brokers might not be big, but the assets they take with them certainly are, which have an outsized impact when moved because of the independent channel s smaller size. by highest average production avg. annual aum in gross avg. aum fee-based excess production per advisor programs capital RANK Company per advisor ($ mil.) ($ Bil.) ($ mil.) Commonwealth Financial Network $385,042 $9.9 $23.9 $4.9 2 VSR Financial Services $367,000 $3.8 $3.2 $2.2 3 Raymond James Financial Services $356,535 $44.6 $53.5 $5.8 4 Geneos Wealth Management Inc. $332,006 $35.0 $3.9 $3.0 5 First Allied Securities Inc. $297,000 $4.8 $5.0 $6.8 6 Prospera Financial Services $274,694 $9.0 $0.8 $.7 7 NFP Advisor Service Group (and Affiliates) $274,483 $0.5 $9.7 $ securities America Inc. $242,752 $5.5 $3.3 $8.0 9 M Holdings Securities Inc. $235,506 $3.6 $2.3 $.3 0 Founders Financial Securities LLC $232,000 NA $0.4 NA SII Investments Inc. $225,653 NA NA $6.4 2 FSC Securities Corporation $29,988 $0.6 $0.3 $ Triad Advisors $25,000 $20.0 $2. $2.2 4 Summit Brokerage Services Inc. $23,000 $27.0 $.3 $6.0 5 Investment Centers of America Inc. $208,02 NA NA $6.4 6 LPL Financial LLC $206,37 $7.9 $0.6 $ Royal Alliance Associates $202,605 $4.3 $6.5 NA 8 National Planning Corporation (NPC) $98,878 NA $5.8 $9.8 9 Correll Co. Investment Services Corp. $90,000 $85.0 $0.9 $ United Planners Financial Services $90,000 $7.6 $. $5.2 2 Multi-Financial Securities Corporation $89,063 $4.3 $3.5 $5. 22 J.W. Cole Financial Inc. $89,000 $5.0 $.0 $.3 23 Securities Service Network Inc. $85,85 $.2 $3.7 $ Cambridge Investment Research Inc. $83,482 NA $22.8 $ Financial Network Investment Corporation $80,966 $6.2 $.5 $.4 80 Investment Advisor June 20 AdvisorOne.com

5 As we mentioned last year, the rise of hybrid advisors those who affiliate with a broker-dealer while simultaneously running their own RIA firm as well continues. The advisor s business will not grow through market appreciation simply because our analysts tell us returns will be lower going forward, Bill Dwyer of LPL Financial, told us last year. That means advisors will have to grow their practices by adding clients. The autonomy that independent advisors experienced in the 980s and 990s, almost ruggedly so, is no longer possible, Dwyer says. It s just too costly. by friendliness to rias average Cfps in years reps with total rep experience RANK Company their own ria force (per advisor) Triad Advisors 84.3% 84.9% 7 2 Securities Service Network Inc. 47.4% 3.6% 6 3 Royal Alliance Associates 44.7% NA NA 4 United Planners Financial Services 30.2% 23.7% NA 5 FSC Securities Corporation 25.3% NA NA 6 American Portfolios Financial Services Inc. 22.0%.0% 8 7 Cambridge Investment Research Inc. 2.3% 27.% 8 8 Securities America Inc. 9.7% 29.0% NA 9 Geneos Wealth Management Inc. 6.7% 33.3% 20 0 First Allied Securities Inc. 4.2% 20.2% 9 Commonwealth Financial Network 3.0% 45.3% NA 2 SagePoint Financial 2.6% NA NA 3 Capital Financial Group/H. Beck Inc. 2.2% 4.7% 0 4 Ausdal Financial Partners.% 9.% 2 5 LPL Financial LLC 9.4% NA 4 6 Crown Capital Securities L.P. 8.2% 22.% WRP investments Inc. 8.2% 7.5% 52 8 Capital Investment Companies 6.9% 9.5% NA 9 SII Investments Inc. 6.6%.5% NA 20 Independent Financial Group 5.9% 2.% 5 2 Investacorp Inc. 5.9% NA 0 22 M Holdings Securities Inc. 5.7%.7% NA 23 National Planning Corporation (NPC) 5.% NA NA 24 VSR Financial Services 4.9% 30.0% 7 25 NEXT Financial Group Inc. 4.7% 7.5% 5 82 Investment Advisor June 20 AdvisorOne.com

6 Speaking of home office support, here s something that should give you pause: a bank with an independent channel. The model came from a desire to attract and retain the best financial advisors in the country, John Peluso, president of Wells Fargo Advisors Financial, recently told us. When we started it years ago, we evaluated industry trends and it was obvious to us that the best often didn t want to work in a companyowned shop. They wanted to be able to choose how to affiliate. by home office support ratio of reps to home home office office staff compliance RANK Company staff staff recruiters professionals Century Securities.0 : Raymond James Financial Services.3 : 2, Waddell & Reed Inc..3 : Correll Co. Investment Services Corp..6 : 5 5 First Allied Securities Inc. 2.3 : Commonwealth Financial Network 2.7 : PrimeVest Financial Services 2.8 : Prospera Financial Services 3.5 : Multi-Financial Securities Corporation 3.7 : Investment Centers of America Inc. 3.8 : VSR Financial Services 3.8 : Securities America Inc. 4.0 : Berthel Fisher & CO. Financial Services Inc. 4.6 : Summit Brokerage Services Inc. 4.6 : Cambridge Investment Research Inc. 4.8 : Finance 500 Inc. 4.8 : Sammons Securities Company 4.8 : LPL Financial LLC 5.0 : 2,552 NA Financial Network Investment Corporation 5.4 : Signal Securities Inc. 5.5 : FSC Securities Corporation 5.5 : Geneos Wealth Management Inc. 5.6 : Broker Dealer Financial Services Corp. 5.6 : Investacorp Inc. 6.2 : Founders Financial Securities LLC 6.3 : Investment Advisor June 20 AdvisorOne.com

7 INVESTMENT ADVISOR S directory of independent broker-dealers for more information... American Portfolios Financial Services Inc. (697 reps) Commonwealth Financial Network (,427 reps) H.D. Vest Financial Services (4,70 reps) Ameritas Investment Corp. (,320 reps) Ausdal Financial Partners (235 reps) AXA Advisors LLC (4,372 reps) Berthel Fisher & Company Financial Services Inc. (329 reps) Broker Dealer Financial Services Corp. (237 reps) Cadaret, Grant & Co. Inc. (89 reps) Cambridge Investment Research Inc. (2,60 reps) Capital Financial Group/H. Beck Inc. (83 reps) Capital Investment Companies (89 reps) Correll Co. Investment Services Corp. (8 reps) Crown Capital Securities L.P. (330 reps) Finance 500 Inc. (72 reps) Financial Network Investment Corporation (2,00 reps) First Allied Securities Inc. (628 reps) Founders Financial Securities LLC (63 reps) FSC Securities Corporation (,085 reps) GBS Financial Corp. (75 reps) Geneos Wealth Management Inc. (252 reps) Harbour Investments (94 reps) Independent Financial Group (494 reps) INVEST Financial Corporation (,7 reps) Investacorp Inc. (46 reps) The Investment Center Inc. (305 reps) Investment Centers of America Inc. (37 reps) Investors Capital Corporation (464 reps) J.W. Cole Financial Inc. (30 reps) Kovack Securities Inc. (29 reps) LPL Financial LLC (2,847 reps) Century Securities (55 reps) Genworth Financial Investment Services (,663 reps) M Holdings Securities Inc. (505 reps) Investment Advisor June 20 AdvisorOne.com

8 INVESTMENT ADVISOR S directory of independent broker-dealers for more information (continued) MetLife Securities (5,98 reps) Questar Capital Corporation (600 reps) SII Investments Inc. (59 reps) Multi-Financial Securities Corporation (,00 reps) Raymond James Financial Services (3,205 reps) Summit Brokerage Services Inc. (345 reps) National Planning Corporation (NPC) (,442 reps) Royal Alliance Associates (,742 reps) Symetra Investment Services Inc. (325 reps) New England Securities (2,09 reps) SagePoint Financial (,567 reps) Tower Square Securities Inc. (306 reps) NEXT Financial Group Inc. (80 reps) Sammons Securities (467 reps) Transamerica Financial Advisors Inc. (4,700 reps) NFP Advisor Service Group (And Affiliates) (,329 reps) Northwestern Mutual (5,776 reps) The O.N. Equity Sales Co. (746 reps) PrimeVest Financial Services (,500 reps) Princor Financial Services (,989 reps) ProEquities Inc. (,000 reps) SCF Securities Inc. (33 reps) Securian Financial Services (,093 reps) Securities America Inc. (,555 reps) Securities Service Network Inc. (424 reps) Sigma Financial Corporation (622 reps) Signal Securities Inc. (60 reps) Triad Advisors (484 reps) United Planners Financial Services (334 reps) VSR Financial Services (283 reps) Waddell & Reed Inc. (,78 reps) Woodbury Financial Services Inc. (,450 reps) Prospera Financial Services (06 reps) Signator Investors Inc. (,60 reps) WRP investments Inc. (355 reps) Investment Advisor June 20 AdvisorOne.com