Minding your businesses: Broker Dealers step up their support for RIAs

Transcription

1 Minding your businesses: Broker Dealers step up their support for RIAs A SUPPLEMENT TO PRODUCED BY SOURCEMEDIA MARKETING SOLUTIONS GROUP

2

3

4 For 45 years, SII has been creating efficiencies for our advisors and setting the standard for broker/dealer service. Our experienced management team continues to research and develop solutions to meet the changing needs of SII and its representatives, including the most up-to-date technology and product offerings. [ OUR REPRESENTATIVES ] Our advisors experience true independence without feeling left behind. We seek and incorporate suggestions from our representatives into our systems and processes, allowing us to provide the most practical solutions for the unique needs of each practice. [ PARTNERSHIP ] We take great pride in the culture of our organization and the long-term partnerships we have built with our representatives. Join us in celebrating a refreshing alternative in broker/dealer accountability and find the personalized service you deserve WIN W SII [ ] [email protected]

5 Publisher s Letter Dear Reader, The role of advisors is changing constantly. Gone are the days when successful portfolio management for your clients meant you were running a successful advisory practice. You now need to think of your business as just that a business and see that it is run accordingly. Much easier said than done, especially given the many hats advisors wear on a daily basis. Your broker-dealer is one place to turn for support. This year, in Financial Planning s 16 th Annual Broker-Dealer Guide, we ll highlight what some of the leading firms are doing to help advisors juggle these new responsibilities and give you the resources you need to position your practice for growth in the future. Whether it s making investments in technology, hiring additional support personnel with specific expertise or offering new tools and training, clearly the most prominent broker-dealers recognize that if they re not continually adding value to your relationship then you ll find someone who will. When it comes to having the right strategic partners, size definitely matters. Thankfully, size is not synonymous with service with regards to brokerdealers and the best fit is never the same for every advisor. The range of firms, from industry giant to small boutique and everything in between, allows advisors to find the partner most closely aligned with your needs. Thank you for being a loyal Financial Planning subscriber, and please let us know how we can continue to help further your success. All the best, Mike Schott Publisher [email protected] 3 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

6 25% can go a long way Where will it take you? Get up to 25% of your trailing-12 GDC upfront Great new office space? Great new technology? Great Barrier Reef? Whatever you decide to do with your 25% is a Great idea. Pay off debt, invest in your business, relax and recharge on the other side of the world and come back ready to tackle It s up to you. For qualified advisors, we offer a transition package of up to 25% when you join. We cover your registration costs and any account closing fees your clients may incur. So, 25% means 25%. Investors Capital Corporation is a premier independent broker/dealer offering you 5-Star Service every day. Since 1992, our mission has been to make you feel special and important while helping you achieve success personally and professionally. We are predominantly owned by our advisors, clients, and staff so, you experience real independence and firm ownership. Our warm home office culture is based on honesty, respect, and integrity for our advisors you ll enjoy your relationship with us. Get 5-Star Service sm and more every day Our entire home office staff annually attends The Ritz-Carlton Leadership Center to reinforce the principles of their legendary service. Our goal: you receive that same caliber of service. Every day. We offer proven practice management to help you grow. Our CapitalCONNECT technology will help you increase your efficiency. And our customizable advisory programs will help you attach value to your practice. Get 25% in 2013 and make this the year you get the resources you want along with the partner you need to truly grow. Where will joining Investors Capital take you? Hopefully, to places, personally and professionally, you ve always longed to go. Contact us today to see if you qualify.

7 Contents 3 Publisher s Letter 6 Dedicated Management: Broker-Dealers Arm Their Advisors with New Tools to Help Them Mind Their Businesses 14 Recruiting Today: In A Tight Marketplace, The Lures Come Out 19 Big vs. Small: Two Transitioning Advisors and Their Search for the Right Size in a Broker-Dealer 2013 Survey Data 28 Total Revenues 30 Payout Grids 33 Services & Fees 35 Clients & Accounts 36 Reps & Production 38 Commission-Based Products 40 Fee-Based Products 41 Corporate Staff 42 Smaller Firms 43 Networks 44 Top 10 Lists 45 Explanatory Notes 46 Resource Directory SENIOR PROJECT MANAGER Julia Micallef ART DIRECTOR Janette Leung PUBLISHER Mike Schott NORTHEAST SALES MANAGER Robin Riley MIDATLANTIC SALES MANAGER Jim Shannon MIDWEST SALES MANAGER Vicki Hamilton WEST REGION SALES MANAGER Gena Haas CLASSIFIED ADVERTISING MANAGER Sheila Sullivan-Alyskewyz ADVERTISING SALES ASSISTANT Betty Lai REPRINT SALES DIRECTOR Godfrey Livermore MARKETING MANAGER Susan Zeqiri CEO Douglas J. Manoni CFO Rebecca Knoop EVP & MANAGING DIRECTOR, BANKING & CAPITAL MARKETS Karl Elken EVP & MANAGING DIRECTOR, PROFESSIONAL SERVICES & TECHNOLOGY GROUPS Bruce Morris EVP & CHIEF CONTENT OFFICER David Longobardi EVP, MARKETING SOLUTIONS Adam Reinebach SVP, CONFERENCES John DelMauro SVP, HR & OFFICE MANAGEMENT Ying Wong 5 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

8 DEDICATED MANAGEMENT: Broker-Dealers Arm Their Advisors with New Tools to Help Them Mind Their Businesses Financial advisors have expertise in financial planning. They know all about investments and how to deliver financial advice. They are sometimes so focused on helping clients with their investments and goals that they lose sight of the fact that financial planning is also a business and despite their many other skills, they don t necessarily know how to run a business. This where the concept of dedicated management comes into play. It is a subset of practice management and it is an area of fierce competition among broker-dealers to provide the best services to their affiliated RIAs. Dedicated management refers to a management position devoted to running the RIA business, says Rebecca Pomering, CEO of Moss Adams Wealth Advisors. For RIAs with the necessary scale, this could be a full time internal position. For smaller RIAs, help with this responsibility can be partially outsourced to their broker dealer who can provide the necessary training and support. Moss Adams, an accounting and business consulting firm, coined the phrase dedicated management in research reports as far back as Broker-Dealer Guide / SourceMedia Marketing Solutions Group 6

9 Broker dealers should consider customizing their relationships with RIAs depending on the management capabilities of each client. Rebecca Pomering CEO, Moss Adams Wealth Advisors Broker dealers should consider customizing their relationships with RIAs depending on the management capabilities of each client, Pomering adds. For instance, firms with a full time dedicated manager in place, such as Pomering s she is the CEO, not a glorified office manager still might require high levels of support from a b-d. For RIAs without a dedicated manager, who are running the business side of things largely in their spare time, the b-d will have to supply a more complete skill set. This could include compliance support; operations support; strategic planning support; and marketing support. Not every b-d uses the precise term dedicated management but all are familiar with the concept, and the importance of meeting their affiliated RIAs needs in this area. They certainly are upping the ante: B-Ds are arming their advisors with an amazing array of new tools related to the business side of financial planning. These include new technology, tactics, and resources. There is a reason for heavy investments by b-ds in this area. As Pomering points out, product offerings and advice are increasingly commoditized. Instead, professional management capabilities, supported or even supplied by a b-d, is what will distinguish a good vs. mediocre RIA firm in the future, she says. B-D OFFERINGS: Improved Training Broker dealers have upped their dedication to training to help RIAs with their own business management. Take the offering of Questar Capital, the broker-dealer for Allianz Life: We have implemented a lot of training, education, and motivation programs in the last 3 years, says Questar s President, Kevin Bachmann. Questar s primary offering is the AMP (Amplify your Practice) program. It consists of two sessions, each of which unfolds over two days. The first session is focused on growing the business; the second is more client-centric, and includes a compelling session devoted to the subtle art of how to get referrals without explicitly asking for referrals. Overarching topics include how to create branding messages, as well as how to develop and fill market niches. As one rep said of the program, which costs a nominal fee, It s an investment must for anyone serious about taking their business to the next level. Bachmann isn t surprised by this reaction: it s a common one from RIAs when it comes to this program. They value it, they love it, they stay with us, Bachmann says. Questar is now developing a graduate AMP, a, more intensive and extensive offering which will take the program itself to the next level. When it comes to business training of RIAs, Bachmann explains Questar Capital s philosophy: The advisors are taking care of their clients. My job as the broker-dealer is to take care of the reps and help them grow their practice and bring to them that value add. It s an investment must for anyone serious about taking their business to the next level. Kevin Bachmann President, Questar Technology Technology is the core of broker-dealer offerings and often what sets them apart. Technology focused on management, not just investment, is key to running an RIA business successfully. ING U.S., which plans to rebrand itself Voya Financial, is at the forefront of offerings in this area, through its broker dealer ING Financial Partners, (which similarly will be renamed). Karl Lindberg, ING Financial Partners President says, we have a whole host of tools we offer planners in this and other areas. These tools provide the advisor with a streamlined process, freeing up time that can be devoted to business development or other activities. Management tools are integrated with other planning tools, to provide a comprehensive experience for planners, as well as clients. Our approach is to find the right industry and planning tools for advisors, and integrate these into a common solution set, says Lindberg. The broker-dealer provided workstations help advisors run many facets of their businesses. For instance, a robust marketing program that gives them turnkey marketing campaigns is built into the platform. Alternatively, the platform can deal with personnel issues including administrative employee turnover; the technology makes it that much easier to transition an employee in or out. RIAs can leverage any discussions they have with clients about new investments or educational offerings, by using the platform s capabilities to send out automatic yet customized mailings. 7 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

10 Voya s overall business is now heavily retirement-centric, focused on helping American s to plan and save to and through retirement. The broker-dealer arm shares this interest, and furthermore has unique partnerships with 401k plans. These give reps unusual access to large groups of employees. Reps can provide retirement readiness, education, and planning to a whole new population outside of the traditional financial planning channel. Says Karl Lindberg, this is a huge opportunity for us. Sponsors don t want you to cherry pick, they want to have a program of high end planning for everybody. The program Lindberg provides his advisors with allows them to do exactly that. It means they can spend more time with clients and less time on the back office. Mentoring AIG s Advisor Group provides all the latest offerings to let their advisors run and grow their businesses efficiently. For instance the company has a data portal that combines client information, back office technology, and social media capabilities, assuring that client outreach is customized. Advisor Group similarly offers business development, coaching and succession planning. But the company has an additional offering related to RIA business management that is perhaps unique: mentoring. The goal is to build a business model based on the demographics of America today. Larry Roth President and CEO, Advisor Group Larry Roth, President and CEO of Advisor Group, explains, the idea is that we, as an industry, need more advisors, younger advisors, women advisors. Mentoring is one solution for reaching this goal for Advisor Group, and for the industry on the whole. As Roth points out, there is dramatic misalignment between the average indy advisor, who is typically a male in his early fifties, and the general population, where more than 50% of the assets are now controlled by women. And when a husband dies, most surviving widows seek a new financial advisor, and often times they look for a female advisor. In general, people tend to be more comfortable working with an advisor who is like themselves. Advisor Group is building a comprehensive program to recruit more women to the industry and help female advisors grow their practices (called Generation i), incorporating mentoring as a way to overcome some of these disparities. The program includes scholarships, as well as internships at Sponsors want to have a program of high end planning for everybody. Karl Lindberg President, ING Financial Partners existing firms. Mentoring is key to helping women advisors grow their practices. Sometimes other women are the mentors, but men can be mentors too. The goal is to build a business model based on the demographics of America today, Roth says. Gender is the current focus of mentoring but other forums being explored include LGBT and ethnicity, with all programs spearheaded by Advisor Group in collaboration with advisors. The resulting business and advisor model will serve a larger part of the population than the current model. Says Roth, No one firm can fix the advisor demographic problem. We hope to someday deploy this at an industry-wide level. Advisor Group s Generation i and mentoring program could serve as the springboard towards building a larger and more inclusive advisor workforce. A Holistic Approach Each major broker dealer has its own offering related to supporting the business side of the business. The emphasis varies from technology to practice management to business development to compliance support. What sets Cetera Financial Group apart is its focus on these things as a whole. Call it holistic dedicated management. Allison Couch, National Sales Manager at Cetera Financial Group says, we look at the advisory business holistically. If you pick and choose what you support instead of supporting the entire business from communication to reporting, you leave gaps for the advisor to fill. She emphasizes this approach best delivers to the advisor the tools they need to run their businesses. As Couch points out, there are really four major areas that impact an RIA as a business: technology; compliance; efficiency; and succession planning. Cetera has solved for these complicated business issues by building out an institutional quality model management and trading platform. It is an open architecture platform, something most advisor representatives demand. Cetera s technology philosophy is to buy, not build, and to use best of class for each program and integrate with their SmartWorks advisor workstation. For those advisors that would rather focus on managing client relationships instead of managing portfolios, they provide a turn-key Mutual Fund/Exchange traded funds turn-key program that received the MMI advisory solution of the year award in Broker-Dealer Guide / SourceMedia Marketing Solutions Group 8

11 Consistency counts. J.D. Power and Associates ranks Commonwealth: Highest in Independent Advisor Satisfaction Among Financial Investment Firms, Three Times in a Row. The industry s leading advisors do whatever it takes to satisfy their clients and so do we. We re proud to be honored for delivering the kind of experience our advisors can rely on day in, day out. Contact us today to learn more about how we can make our consistency work for you. An Independent Broker/Dealer Registered Investment Adviser Established 1979 Member FINRA/SIPC commonwealth.com Commonwealth Financial Network received the highest numerical score in the independent advisor segment in the proprietary J.D. Power and Associates 2010, 2012, and 2013 Financial Advisor Satisfaction Studies SṂ 2013 study based on 2,547 total responses and measures overall financial advisor satisfaction among advisors registered with the Financial Industry Regulatory Authority (FINRA) investment firms. Proprietary study results are based on experiences and perceptions of financial advisors surveyed in October 2012 February Your experiences may vary. Visit jdpower.com.

12 Our focus in on helping advisors stay front and center with their client. Allison Couch National Sales Manager, Cetera Financial Couch explains how this platform and other programs provide support for the major business issues facing RIAs. Take compliance. Cetera has a dedicated Chief Compliance Officer for their wealth management business. Says Couch, regulation is getting more complex. It is critical that we build an RIA that provides flexibility and protects the advisor at the same time. We have three flexible financial planning options as well as a 321 plan sponsor program all that can be done under our corporate RIA. This holistic approach manifests itself in client communications too. It is clear that the greater the number of advisor touches, the more loyal the client. Less clear is how to implement these touches to create the best experience for the client. Cetera has several technology driven programs in this area, including the ability for advisors to use social media. Couch says, Instead of leaving this to advisors on their own, we figure it out and we provide a platform to do it compliantly. A foundation of Cetera s holistic offerings is a keen awareness how highly advisors value their independence, flexibility, and increasingly, their personal brand. Accordingly, Cetera promotes the advisor, and the advisor s relationship with the client, rather promoting the brokerdealer. For instance, advisors have the ability to customize the first page of their quarterly performance report, and include their own photo. Says Couch, our focus in on helping advisors stay front and center with their client. Consulting/Coaching Consulting is a big growth area of broker-dealer RIA business support, and an area where big broker dealers distinguish themselves. Being able to provide a wide-reaching Business Consulting group really comes from economies of scale, says LPL Financial s Executive VP of Business Consulting Mimi Bock. Of course, smaller b-d s have coaching capabilities too, though at LPL it is definitely a focus. Bock is quick to point out LPL has many other programs and activities that support the business side of an RIA or Hybrid RIA s business, including among many other things, robust custody services, an array of technology solutions, fully integrated statementing for client reporting and a broad advisory platform. Further, LPL has a dedicated internal group devoted to learning and development, which creates specialized curriculums for advisors and even their teams. Admins have their own learning and development program as well. But one thing that is unique and special is the Business Consulting group, Bock says. The group works directly with RIAs and hybrids to help them run their business like a business and grow. In terms of business consulting LPL breaks down RIAs business issues into a few core areas. The first is growth: how do they grow the business? How do they look for new clients or get referrals? Here the consulting group offers a whole suite of solutions, ranging from business analysis to services that help RIAs build brand awareness. A second core business issue is efficiency. How can RIAs become efficient business managers? Consultants take apart a business from a process perspective. They identify where the RIA can do things better, faster, even stronger. Client experience and how RIAs are managing this is yet another core focus area for this consulting group. LPL s team provides high-level advice, such as education around client segmentation but other advice is more hands on. We go out to offices and sit down with advisors to have a conversation about the way clients experience everything including the way the receptionist greets people, Bock says. Human Capital and Succession Planning are also key advisor business concerns. How should they pay their staff? Do they have enough staff? How should they value their businesses in terms of succession planning, but more strategically, what are the key execution points? These are all critical questions for advisors, and the consulting group provides answers. Concludes Bock, LPL is doing a lot in this space. As consultants, relationship managers and trainers, we really are the quarterbacks helping advisors to grow their businesses. We really are the quarterbacks helping advisors to grow their businesses. Mimi Bock Executive VP of Business Consulting, LPL Financial Commonwealth Financial Network is another giant indy broker dealer with a large coaching group, part of an even larger practice management department. Practice management supports all the areas where RIAs need help on the business side of things, including leadership, HR, operational efficiencies, revenue growth, and succession planning. Managing Principal Joni Youngwirth has written extensively about best practices in all these areas that can take advisors businesses to the next level. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 10

13 I wanted a culture of yes. What I got was a culture of absolutely. At TD Ameritrade Institutional, advisors are at the center of what we do, and service is at the core of our culture. So if you want to talk about your business, hammer out your goals, or ask us to consider a way to serve you better, we re all ears. Why? Because we re uniquely focused on what s best for our clients. Just like you. TD Ameritrade Institutional. We re listening. Call us at or explore the way we support RIAs at tdainstitutional.com/ourcommitment Follow TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc., and The Toronto-Dominion Bank TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

14 Strategy includes looking at your business the same way a consumer products company looks at their product portfolio. Here the practices clients are their portfolio. Sharon B. Herbst VP, Practice Management and Growth, Personal Advisors Group, Ameriprise Commonwealth affiliated advisors can tap into this support from their broker dealer through a variety of access points. Perhaps the most simple and direct is online information, but as Youngwirth points out, this first level of access is more generic and less specific to any one advisor s practice. Instead, advisors can just call practice management, and ask for a consultation, which Youngwirth terms 2nd level access. The consultants are predominately MBAs, with 10 years of industry experience. Our consultants take questions from advisors but these are strategic questions and answers, Youngwirth says. It might lead to a site visit lasting anywhere from a day to several days to an engagement that can last for months. The 3rd level of access is year-long coaching programs. These address all areas of advisors business concerns. Participants gain more than new skills and business knowledge they develop a whole new business peer group. People become cemented for life, says Youngwirth, the program in this sense lasts a career. Commonwealth s coaching program is an intensive, serious, and valuable undertaking for RIAs, but at the same time, Youngwirth says, it s so much fun, yet another reasons for advisors to consider it. People become cemented for life, the program in this sense lasts a career. Joni Youngwirth Managing Principal, Commonwealth Financial Network Strategy includes looking at your business the same way a consumer products company looks at their product portfolio. Here the practices clients are their portfolio. This eye opening insight is provided by Sharon B. Herbst, VP, Practice Management and Growth, at the Personal Advisors Group at Ameriprise. Thinking strategically means optimizing this portfolio to determine who you will serve and how will you serve them. Client segmentation is key. Herbst says, many advisors feel their practice is running them, they aren t running their practice. This is because they haven t grown their businesses strategically. They instead have added clients as they have come along, maybe without even a minimum required asset level or other more sophisticated set of criteria. Ameriprise provides resources to help advisors to segment their book of business. This leads to strategic decisions: of which business to keep, which to sell, and which to hand off to a junior colleague. This strategic thinking could result in a tighter focus on a specific type of client, creating a more profitable practice. The larger strategic goal is to increase the value of the practice itself. Says Herbst, the biggest asset an advisor has is their practice. They need to look beyond just their annual revenues. Dedicated management, the current focus of so much broker-dealer and advisor activity, is key to increasing these values. Having an individual on the advisor s team dedicated to the business, or setting aside time dedicated to this issue, with guidance and support from a b-d, are best ways of reaching this goal, and efficiently growing the value of the practice. Dedicated management is the ultimate smart strategic decision for RIA and broker-dealer alike. A focus on strategy The business of the business has many facets. This can be seen in the ways different b-ds approach the topic and decide where to strategically focus their efforts. Ameriprise Financial s strategy for dedicated management includes support, training and coaching in financial management, human capital, operational efficiencies, and other critical areas for running the business. It also provides an additional area of support for advisors: business strategy itself. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 12

15 all ways open ARCHITECTURE

16 Recruiting Today: IN A TIGHT MARKETPLACE, THE LURES COME OUT Cambridge Investment Research CEO Eric Schwartz has watched the advisor market tighten in the past couple of years, with top talent less likely to jump as quickly today to a new broker-dealer. In 2012, the firm recruited $49 million in GDC the lowest in five years. And while all signs point to Cambridge on the upswing, and back on track to recruit $60 million for 2013, Schwartz says the new terrain has caused broker-dealers, including Cambridge, to re-assess how they court these top producers. I think competition is going to get worse, says the Fairfield, IA.-based Schwartz. In 10 to 15 years, about 85% of this whole channel will be in the hands of six or seven large independent firms. I think it s going to get tougher. Gone are the days when advisors were like salmon during mating season leaving firms at such high rates that brokerdealers could almost just scoop them up with a net. Schwartz recalls when LPL bought Mutual Service Corporation in 2007, closing down that firm, and allowing Cambridge to land close to 150 new advisors in a six to eight week period. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 14

17 Today, with regulatory paperwork increasingly more complex and even the buoyant nature of the market, advisors don t appear to be feeling a need to move. The grass apparently seems as green from where they re sitting right now. Overall satisfaction among independent advisors increased 29 points from 2010 to 2013, and is up 12 points for employee advisors since 2010, according to the 2013 U.S. Financial Advisor Satisfaction Study by J.D. Power and Associates., a global marketing research firm. While many firms say that recruiting is actually holding fairly steady for them albeit it not at the same rate of 2009 they do admit to adopting some competitive strategies in the past months. All in hope that top talent will continue to look for something better and choose them. Paying Big Bucks Up-front money, a practice many don t like to talk about but is very common in the industry, is on the rise with advisors given capital just to move to a new broker/dealer. Top producers usually can count on higher percentages, with small groups getting less. Schwartz finds this a disturbing trend, he says, despite increasing their own front money as well over the past several years. About 10 years ago, Cambridge offered just 2% to 3% in up-front money but today that s closer to an average of 9%. Schwartz says he noticed these numbers increasingly about 8 years ago, and understands the logic behind these sweetened deals. In a competitive market place, up-front money is a great lure. In the nature of business, you always lead with your strength, he says And one of the better ways to attract reps is giving more money away then smaller money. Upgrade In Pay While up-front fees are clearly one way to lure advisors, another is creating better pay structures for advisors once they re onboard. That s a direction Raymond James Financial Services hopes will help them attract new advisors. Called Hybrid Select, the new pricing plan, put in place in April, is aimed at advisors who are discretionary managers with at least $100 million in assets under management, says Scott Curtis, president of Raymond James Financial Services. We saw what the competition was doing and we wanted to make sure we were competitive in that space, says Curtis, who adds the decision was partly in response to RIA aggregator firms and custodial firms including Schwab, TD Ameritrade and Pershing. Here advisors will keep 100% of their advisory fees, paying a quarterly fee instead to Raymond James. Plus, they can run their shop as an independent RIA or sign aboard as an investment advisory representative (IAR). The new model In the nature of business, you always lead with your strength. And one of the better ways to attract reps is giving more money away then smaller money. Eric Schwartz CEO, Cambridge Investment Research has already produced nibbles from interested advisors, says Curtis. And the firm closed its first deal under the new pricing model at the end of May. That person was already in their due diligence and read about this, says Curtis. So here we are a couple of months later and he decided to come along with us. Digital Marketing While having a competitive advantage like a unique pricing model is key today, broker-dealers still have to get these lures in front of interested advisors. As in any business, getting your message to the right people is crucial to landing a sale, or in this case signing an advisor who s open to moving. While referrals and cold-calling still have a role in recruiting, brokerdealers are trying to better target messages to land in front of reps already receptive to listening. At Royal Alliance this micro-targeting involves electronic media. Kevin Beard, the broker-dealer s senior vice president of recruiting says the firm started using a combination of social media, technology plus an outside vendor to create a more targeted process in the third-quarter of Beard says the past methods of sending a mailing to 10,000 random advisors wasn t effective in today s competitive age. I couldn t tell you if they were reading our letter or postcard, or throwing it away, he says. Using electronic media we can make it a little more personal. Royal Alliance now pushes messages embedded with a microsite tag and those who click for further information are taken to a site with content such as a video chat from broker-dealer s president. There they re asked to fill in a bit of information about themselves, and suddenly a mass market blast generates 300 quality leads. From there I can send them meaningful white papers and drip on them, says Beard, of how he stays in contact with these potential new recruits. The firm has already seen results. A $3 million producer signed aboard in April. A $700,000 producer and a $400,000 producer also signed aboard at the end of May. To Beard, there s no questions these targeted messages are working to help Royal Alliance get noticed. 15 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

18 Frankly in any service industry you have to offer more breadth and expertise to work with the best. You can t be mediocre. You have to offer 110%. Andrew Daniels Managing Principal, Business Development, Commonwealth By using electronic media to get our message out, we have advisors who want to take a look at us and invite us to the bake-off, he says. Cannibalize Competitors To some broker-dealers, there s more logic in landing several fish at once rather than baiting their hook just one at a time. While the war plan at Securities America involves recruiting individual advisors the La Vista, NE.-based firm has also had success in chasing and absorbing other broker-dealers. In December, the firm acquired Investors Security Company, and in January added 30 advisors from transitioning Eagle One Investments into the broker-dealer. Securities America is also currently in talks with other firms, and expects these conversations yield additional success in the second half of the year, says Gregg Johnson, Securities America s senior vice president of brand office development and acquisitions. The conversations I am having with them have some common threads, says Johnson. The margins they experienced in the last five to ten years have shrunk because of lower spreads on cash, and because they ve had to spend more money on compliance and supervision. Johnson notes that many broker-dealers started in the 1990s as former brand managers, looking to increase margins. But fast-forward ten years, and margins are starting to shrink, he says. Firms are having to spend more time and resources handling regulatory issues and as a result finding they now have less time to spend with clients which they still enjoy. Plus consumers now feel more empowered to push back litigiously when they feel wronged. And even one or two customer arbitrations can be crippling, to a brokerdealer both in assets and reputation, says Johnson. Securities America is starting to attract broker-dealers interested in being acquired. A press release published earlier this year about the firm s two deals, generated phone calls from others who wanted to learn how they could make that transition as well. And that, says Johnson, is a clear competitive advantage. It s not an easy thing to do to help a broker-dealer go through the process of a 1017 filing, he says of the regulatory process a firm must go though if they undergo a merger, acquisition or succession. The communication with advisors, moving data and accounts, making that process of becoming a branch office as smooth as possible, we think we ve developed that. More Flexibility Commonwealth s game plan to stand out in this competitive space involved offering more options to advisors. Understanding that many brokers were interested in the RIAonly space, the Waltham, MA-based firm now lets reps sign in a variety of guises from coming onboard as a RIA, an IAR, a series 7 registered rep or even a hybrid of these positions. The firm is also offering greater flexibility, even after an advisor has joined. The new option is now called a glide path, says Daniels. Here, a rep can sign with Commonwealth in one capacity, but then later shift to a different role without having to change their infrastructure inside Commonwealth. True, Daniels admits that offering more choices make the process of running their own business a bit more complicated. But in today s tight market place, broker-dealers have little choice if they want to look like a competitive player in the game For the bigger firms, that continues to be the plan to find ways to stand out from the rest of the crowd particularly at a time when advisors appear to feel less of a need to move. Broker-dealers don t think that their lures will get advisors back in motion to the levels they were in recent past years. But they do believe that without something competitive better pricing, more up-front money, or more options of how to join a firm they re in danger of sitting on the river banks, with little bait and little chance of landing today s top talent. Frankly in any service industry you have to offer more breadth and expertise to work with the best, says Daniels. You can t be mediocre. You have to offer 110%. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 16

19

20

21 BIG VS. SMALL: Two Transitioning Advisors and Their Search for the Right Size in a Broker-Dealer Some broker-dealers offer scale; others a more intimate, personalized touch. Which b-d is the best fit for an RIA is ultimately a personal decision, but the size of a b-d is one key factor for transitioning advisors to consider. Two advisors who recently transitioned to new broker-dealers, one a relatively small b-d, the other an indy giant, share their experiences. What advisors learned in each case can be instructive for RIAs evaluating similar moves. 19 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

22

23

24 Our objective wasn t to be with the biggest. But we wanted them to have enough size to be well capitalized, and to have the depth and resources to be able to transact our business. William Bill Leeb President, Financial Council Going Big: William Leeb s story William Bill Leeb, President of Financial Council, has spent 32 years in the financial planning business. For the majority of this time he was with a single broker-dealer, one which went through numerous name and management changes. Despite this turmoil, Leeb and his Towson, Maryland based firm stayed with them; Leeb saw the broker-dealer as just a place to transact business, no more, no less. Financial Council was otherwise self-sufficient. But then the service, and the technology at b-d fell behind, negatively impacting his business. It was time for Leeb and Financial Council to make a move. We put together a search team, and developed a grid of a dozen broker dealers we were familiar with, delineated by different criteria, Leeb says. The intermediate goal was to create a short list of three potential finalists, to be followed up by site visits to each. The rationale for Leeb s formalized search approach was multifold. He didn t want to be reactive he was besieged by calls from b-ds seeking his business and wanted to be proactive instead. And switching b-ds could be enormously disruptive for his clients and his firm, and so not a decision to be taken lightly. A tremendous amount of thought went into the details of the grid. Interestingly, size was not an initial consideration. Our objective wasn t to be with the biggest. But we wanted them to have enough size to be well capitalized, and to have the depth and resources to be able to transact our business, Leeb says. The larger goal of the search was to find the right broker-dealer that could be the best partner, allowing Financial Council to serve its clients in the most effective way. Three broker dealers made the short list, one of them indy giant Commonwealth Financial Network in Waltham, MA. We went up to Boston to kick the tires. We met all the top brass, Leeb says. He was impressed by how well prepared they were, and Commonwealth s overall capabilities. Leeb reports that the visit was as much about Commonwealth interviewing Financial Council as Financial Council interviewing Commonwealth: all parties were looking for a good fit. After the onsite meeting, Leeb and his team shared their notes: we had made our decision. It was Commonwealth. He didn t need to go to the other two broker dealer finalists on his list. The search was over. The transition occurred in 2009, at the tail end of the liquidity crisis, a time of great market turmoil. Leeb made it clear to his staff that they faced two daunting tasks. One was the immediate transition of broker-dealers, a traumatic process for advisor and client alike. Everyone needed to pull together to get through it. But a second issue was the economic crisis, which couldn t be ignored or backburnered regardless of any administrative distractions caused by the transition. It was important to keep clients focused on their investments and savings goals. The market chaos was making it a very difficult time for all investors. Leeb similarly made it clear to Commonwealth that, I had to keep my head down and focus on my clients during the transition. The transition was remarkably seamless. Commonwealth brought on site a dedicated team of people to help. They smoothly transitioned over 2,400 client accounts. Commonwealth s size, though it wasn t an initial search criteria, turned out to have played a critical role in making Leeb s experience a happy one in many ways. Specifically in terms of the transitioning, Leeb says, having a full dedicated team might be available at a smaller b-d, but I can t imagine they would be as well equipped as at Commonwealth. It requires a certain amount of size to have those resources. These economies of scale manifest themselves in many other areas of Commonwealth and the capabilities it can provide to RIAs. You don t know what you don t know, says Leeb. When they made us aware of all the resources they had, my reaction was wow, these are ways we can grow our business. These resources include HR management, practice management, and a portal that in one page summarizes a tremendous amount of client information. The company is leader in technology as well. Leeb says, I don t think of Commonwealth as a big brokerdealer, they have the capabilities and economies of scale that come with size, but you never feel like you are just a number. Instead, he says somehow the company maintains a small, family feel. This can be seen in the friendly way even the most professional advice is delivered. And Leeb argues this culture starts at the top it may be a very big company but it is a very caring one too. Says Leeb, they are a truly understanding partner. Commonwealth gets an A. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 22

25 access allocate build An integrated system is flexible and efficient, reducing the complexity of managing a practice. Envestnet helps our team at the home office help advisors succeed. Kristen LeClair, AIF, Senior Vice President, Advisory & Investment Services at NFP Advisor Services Group rebalance monitor evaluate advise invest manage report document track integrate research gather analyze To learn how Envestnet can empower your practice, visit envestnet.com Envestnet reserves the right to add to, change or eliminate any of its services without prior notice. The testimonials presented are applicable to the individual fi rm depicted and may not be representative of the experience of others. Testimonials are not paid and are not indicative of future performance or success Envestnet, Inc. All rights reserved

26 Independence

27

28 The Beauty of Smallness: Don Hilburn s Story Don Hilburn is the Principal and Founder of Wealthbrook Advisors, an RIA that joined Royal Alliance in Hilburn s motives for selecting this broker dealer, and leaving his previous giant b-d, behind are in some senses the opposite of William Leeb s: While a lot of advisors like the [mega] model, we felt that we needed to be at a smaller firm, says Hilburn. Royal Alliance isn t really small, it s part of one America s larger indy broker dealer networks, AIG s Advisor Group. Wealthbrook Advisors isn t small either. It has 11 advisors spread across states in the Southeast and Oregon too; each advisor maintains his or her own practice with Wealthbrook providing supported independence. Nonetheless, the relatively intimate scale of Royal Alliance, combined with its outsized capabilities, was the exact combination Don Hilburn was looking for when he decided to transition broker-dealers. Wealthbrook Advisors works with a diverse range of clients individuals, small businesses and professional groups. It is a growing practice, and one focused not only on retail clients, but also on recruiting advisors to the firm. Hilburn s previous broker dealer was adequate, but he wanted to take things up a notch. He says two years ago, we decided that if we really wanted to grow and take our practice to the next level, we would need to find a broker-dealer partner who was strong, stable and also focused on our growth. Wealthbrook considered a number of different brokerdealers for this role. Hilburn lists the key qualities he was seeking in a relationship with a broker dealer: he didn t want to be just a number ; he wanted to be a valued client; he wanted to be able to access senior leadership and work directly with them to address his groups unique business needs; he wanted access to diverse technology and open platforms that could be customized for his practices. And perhaps most importantly, he wanted a broker-dealer that would help Wealthbrook recruit advisors to the firm, and take the practice to the next level. Technology was a particular concern. Says Hilburn, we believe that technology should meet the needs of the advisors and not the other way around where advisors have to conform to unwieldy legacy technology. His requirement was that technology be at least equal to that of the wirehouses, because recruiting from wirehouses was a priority. Hilburn and Wealthbrook found that Royal Alliance was the perfect fit for all of these needs and more. We didn t find this type of customized, personalized service at mega firms. But we did find it at Royal Alliance, Hilburn says. This personalized level of service was apparent from his first meeting with Royal Alliance. The President of Royal Alliance came to his office and listened to his specific requests. The President immediately understood the particular weight given to recruiting in Wealthbrook s strategy. Royal s recruiting team recruits advisors directly to an RIA, rather than just the b-d. And it could help Wealthbrook reach prospective advisor recruits through targeted direct mail campaigns. In additional to this personal touch, Wealthbrook was attracted to Royal Alliance because of its financial strengths. Its technology offerings are what really sets it apart. The company has invested millions of dollars into its Advisor Portal. It employs an open architecture model with many product options, letting RIAs customize solutions for each client. For instance, Royal Alliance offers one on one support in terms of compliance and social media, something Hilburn didn t receive from his previous b-d. There s just so much that Royal offers us that a mega firm could not; the personalized service, the attention, the flexibility. Don Hilburn Principal and Founder, Wealthbrook Advisors I can honestly say that this is the best technology available to advisors, particularly in the areas of advisor managed portfolios, says Hilburn. He finds that the technology is as good as anything deployed wirehouses, a fact repeatedly confirmed by three advisors who recently joined Wealthbrook from wirehouses. There s just so much that Royal offers us that a mega firm could not; the personalized service, the attention, the flexibility, Hilburn says. The transition was a smooth one and he couldn t be happier with his new, relatively small b-d. Don Hilburn now feels like an important, valued client, and part of a team. Says Hilburn of his experience joining his new b-d, If you ask anyone at Wealthbrook, they ll tell you the same thing we ve found our broker-dealer. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 26

29 Just because you re with an independent broker-dealer doesn t mean you re independent. RE-IMAGINE INDEPENDENCE. Being a truly independent advisor means having real choices that matter to you. It means being able to find the ideal balance between autonomy and support. And it means being able to grow your business your way with our All Ways Open Architecture SM. Our advisors come here for the tools and rewards they expect from a leader. They stay because being independent at FSC comes with a team invested in your success. JOINFSC.COM To have a recruiter contact you, scan the barcode with your smart phone. FSC Securities Corporation is a registered broker-dealer and Registered investment advisor, member FINRA and SIPC Windy Ridge Parkway, Suite 1100, Atlanta, Georgia A PROUDLY FUELED BY all ways open ARCHITECTURE SM

30 FP50 BIGGEST INDEPENDENT BROKER-DEALERS TOTAL REVENUES FP50 RANK TOTAL REVENUES COMMISSION REVENUE FEE REVENUE OTHER REVENUE COMPANY $000s % CHANGE $000s % CHANGE $000s % CHANGE $000s % CHANGE LPL Financial 3,582, ,768, ,054, , Ameriprise Financial 2,910, ,238,271 (4.8) 1,326, , Raymond James Financial Services 1,208, ,696 (0.3) 443, , Commonwealth Financial Network 712, , , , AXA Advisors 624, , , , Wells Fargo Advisors Financial Network 596, , , ,620 (21.4) 8 Northwestern Mutual 553, , , ,297 (2.4) 6 MetLife Securities 537,573 (0.9) 454,146 (3.3) 52, , Cambridge Investment Research 461, , , , Securities America 400,000 (10.0) 199,100 (10.7) 158,500 (8.2) 42,400 (12.8) 11 Royal Alliance Associates 388,401 (1.9) 194,749 (4.7) 160, ,816 (17.3) 12 NFP Advisor Services Group (& Affiliates) 364,750 (1.2) 242,035 (4.1) 104, , Waddell & Reed Financial 361, ,057 (3.7) 122, , Cetera Advisor Networks 360, ,252 (1.6) 137, , National Planning 346, ,075 (0.4) 87, , ING Financial Partners 339, ,479 (0.1) 67, , MML Investors Services 336,118 (3.2) 244,282 (6.8) 66, , Securian Financial Services 291, , , , FSC Securities 263,088 (0.3) 145,720 (3.0) 87, , Signator Investors 263, , , , H.D. Vest Investment Services 248, ,999 (2.5) 87, , Woodbury Financial 243,328 (4.1) 210,391 (5.1) 29, ,123 (21.4) 25 Princor Financial Services 242, , , SagePoint Financial 236, ,601 (2.7) 64, ,513 (5.7) 26 Invest Financial 236, , , , First Allied Securities 232,995 (3.3) 141,493 (3.1) 68,072 (3.7) 23,430 (3.8) 29 Transamerica Financial Advisors 232, , , n/a n/a 28 Cetera Advisors 210, , , , Cetera Financial Institutions 192, , , , SII Investments 166, , , , Park Avenue Securities 152, , , , Cadaret Grant 137, ,361 (0.7) 28, , M Holdings Securities 131, , , , American Portfolios Financial Services 131, , , , Ameritas Investment 127, , , , Triad Advisors 122, , , ,165 (61.9) 33 Next Financial Group 118,737 (5.1) 82,994 (6.5) 31,829 (0.7) 3,914 (8.1) 37 CUNA Brokerage Services 115, , ,080 (1.8) 6, CUSO Financial Services 114, ,039 n/a 7,322 n/a 12,745 n/a 38 ProEquities 110, , , , Centaurus Financial 109, , , , CFG/H. Beck 108, , , , Cetera Financial Specialists 104,199 (0.1) 56,892 (0.1) 41,643 (0.5) 5, Securities Service Network 98, , , , VSR Financial Services 98,136 (1.1) 55,812 (3.9) 36, , Geneos Wealth Management 93, , , (80.1) 49 Investment Centers of America 87, , , , Allstate Financial Services 83,939 (16.4) 80,658 (16.8) n/a n/a 3,282 (4.9) 47 National Securities 83,600 (5.1) n/a n/a n/a n/a n/a n/a 50 Investors Capital 82,284 (1.0) 63,843 (0.5) 16, , MEDIAN 234, , , , Broker-Dealer Guide / SourceMedia Marketing Solutions Group 28

31 America s Finest City brings you America s Finest Broker -Dealer INDEPENDENT FINANCIAL GROUP Exclusive Affiliation. Premier Service. True Independence. We deliver on our promises and provide you with the best service and support in the industry. With IFG, enjoy the freedom you deserve so you can Build Your Business, Your Way. Join America s Finest Listed among America s Fastest Growing Top Financial Services Companies as recognized by Inc One of San Diego s Fastest-Growing Privately held Companies as listed by San Diego Business Journal Ranked Top 10 in Recruiting and Total Revenue Change by Financial Planning Magazine s Annual Broker-Dealer Survey Call David Fischer

32 PAYOUT GRIDS MUTUAL STOCKS BONDS ANNUITIES INSURANCE ALTERNATIVES REP MGD. FIRM MGD. OUTSIDE COMPANY FUNDS % % % % % % % % MGD. % Allstate Financial Services n/a n/a n/a 81 American Portfolios Financial Services n/a 90 Ameriprise Financial up to 91 up to 91 up to 91 up to 91 up to 91 up to 91 up to 91 up to 91 up to 91 Ameritas Investment AXA Advisors Cadaret Grant Cambridge Investment Research up to 95+ up to 95+ up to 95+ up to 95+ up to 100 up to 95+ up to 100 up to 100 up to 95+ Centaurus Financial up to 90 up to 80 up to 90 up to 90 up to 90 up to 90 up to 90 n/a up to 90 Cetera Advisor Networks n/a n/a n/a n/a Cetera Advisors n/a n/a n/a n/a Cetera Financial Institutions not disc. not disc. not disc. not disc. Cetera Financial Specialists not disc. not disc. not disc. not disc. Commonwealth Financial Network up to 95 up to 95 up to 95 up to 95 up to 100 up to 95 up to 98 up to 98 up to 98 CUNA Brokerage Services varies varies varies varies varies varies varies varies varies CUSO Financial Services First Allied Securities up to 95 up to 95 up to 95 up to 95 up to 100 up to 95 up to 95 up to 95 up to 95 FSC Securities Geneos Wealth Management n/a 95 CFG/H. Beck up to 95 up to 85 up to 85 up to % up to 95 up to 95 up to 95 up to 95 H.D. Vest Investment Services n/a n/a n/a n/a n/a n/a n/a n/a n/a ING Financial Partners avg. 89 avg. 89 avg. 89 avg. 89 avg. 89% avg. 89 avg. 89 avg. 89 avg. 89 Invest Financial Investment Centers of America n/a Investors Capital up to 92 up to 92 up to 92 up to 92 up to 92% up to 92 up to 92 up to 92 up to 92 LPL Financial n/a M Holdings Securities n/a 95 MetLife Securities n/a n/a n/a n/a n/a n/a n/a n/a n/a MML Investors Services n/a n/a n/a 69 National Planning National Securities n/a n/a n/a n/a n/a n/a n/a n/a n/a NEXT Financial Group n/a 90 NFP Advisor Services Group (& Affiliates) Northwestern Mutual of deposits varies varies Park Avenue Securities up to 85.5 up to 85.5 up to 85.5 up to 85.5 up to 85.5 up to 85.5 up to 85.5 up to 85.5 up to 85.5 Princor Financial Services varies n/a n/a n/a ProEquities n/a n/a n/a n/a n/a n/a n/a n/a n/a Raymond James Financial Services Royal Alliance Associates SagePoint Financial up to 95 Securian Financial Services up to 95 up to 95 up to 95 up to 95 up to 93 up to 95 up to 95 n/a up to 95 Securities America n/a Securities Service Network Signator Investors n/a n/a SII Investments Transamerica Financial Advisors n/a n/a n/a n/a n/a n/a n/a n/a n/a Triad Advisors VSR Financial Services Waddell & Reed Financial Wells Fargo Advisors Financial Network Woodbury Financial up to 92 up to 92 up to 92 up to 92 up to 93 up to 92 up to 92 up to 92 up to 92 Broker-Dealer Guide / SourceMedia Marketing Solutions Group 30

33 HERE, YOU CONTROL THE LEVEL OF INDEPENDENCE. If you re ready to turn to a truly independent broker/dealer with 25 years experience, then come to Cadaret, Grant. Here, you ll choose the right amount of fees, support structures and technology platforms for your business. And you get the fi nancial resources and stability of an established fi rm with the fl exibility of a private company. Ready to make the switch? Call Cadaret, Grant Recruiting at for a confidential conversation, or visit us online at cadaretgrant.com/contact_us Cadaret, Grant & Co., Inc. Member FINRA/SIPC Independent thinking.

34 Learn why advisors who are driven to reach new levels of production while remaining true to their clients best interests look to First Allied. Our comprehensive new program, custom-made in partnership with Ron Carson and his firm Peak Advisor Alliance, is designed to double your production over 4 years. The groundbreaking Double Your Production program represents our ongoing commitment to be first in growth for independent advisors. If you are an accomplished advisor who understands the longterm benefits of a growth model to optimize and ultimately monetize your business, visit or call First in Growth *Qualified candidates must meet certain requirements and agree to participate in a rigorous calendar of training and coaching activities for four years after acceptance into the program. Terms and conditions apply, please call for details. Ron Carson is a registered representative of LPL Financial and founder of CWM, LLC, a registered investment advisor. CWM, LLC, LPL Financial and First Allied Securities are not affiliated MM061313

35 FP50 BIGGEST INDEPENDENT BROKER-DEALERS SERVICES & FEES AFFILIATION ERRORS & OM. STANDARD REP MAX. INDIVIDUAL TICKET B-SHARE B-D FORGIV. TRUST COMPANY FEES $ INSURANCE DEDUCTIBLE $ COVERAGE CHARGE $ LIMIT $ EQUITY LOANS SVCS. Allstate Financial Services No American Portfolios Financial Services 1,800 No 25,000 1M-2M *See footnote 1 Ameriprise Financial Ameritas Investment 0-3,000 No 5,000 3M 0-35 AXA Advisors 0 No 1,000 prop/2,500 non-prop 5M Cadaret Grant 380 No 5,000 2M Cambridge Investment Research 0 No 7,500 3M negotiable Centaurus Financial 0 No 5, M 20 Cetera Advisor Networks Cetera Advisors Cetera Financial Institutions Cetera Financial Specialists Commonwealth Financial Network 0 No 10,000 2M 0 CUNA Brokerage Services CUSO Financial Services 0 No 15,000 2M 15 First Allied Securities 3,000 No 10,000 1M FSC Securities 1,000 No 0 n/a 0-40 Geneos Wealth Management 0 No 25,000 5M CFG/H. Beck 5,220 No 5,000 2M 9 mutual fund H.D. Vest Investment Services 0 No 5, ING Financial Partners 1,500 No 10,000 4M/claim, 30M annual range from 0 to 45 Invest Financial 3,600 3rd party 15, Investment Centers of America 0-3,000 3rd party 5, Investors Capital 1,245 No 10, LPL Financial 1,200-2,100 No 10,000 *See footnote M Holdings Securities N/A No 10,000 8M 10 or 35 MetLife Securities MML Investors Services 0 No 1,000 2M varies National Planning 4,020 3rd party 5, National Securities 0 No NEXT Financial Group 0 No 5,000 3M 16 NFP Advisor Services Group (& Affiliates) varies No 5,000 2M/claim; 15M total varies Northwestern Mutual 0 No 1,000 10M 0-75 Park Avenue Securities 900 No 2,500 4M - 5M 0-21 Princor Financial Services 0 No 500 3M 0-30 ProEquities 1,560 No 2,500 2M 16 Raymond James Financial Services 0 Yes 5,000 10M varies Royal Alliance Associates 1,000 No SagePoint Financial 1,000 No Securian Financial Services Securities America 4,860 incl E&O No 15,000 2M 0-35 Securities Service Network 4,200 Yes 5,000 1M 0-35 Signator Investors 0 No 0 3M *See footnote 3 SII Investments 4,020 3rd party 5, Transamerica Financial Advisors 4,140 incl E&O No 10,000 3M 15+ Triad Advisors 0 No VSR Financial Services 0 No 5,000 1M 4-30 Waddell & Reed Financial 0 Yes 0 0 *See footnote 4 Wells Fargo Advisors Financial Network 1,800 No 30,000 1M 28 Woodbury Financial 0 No FOOTNOTES: 1: Listed, 25 - OTC, per bond - Listed Bonds; 2: 5-50Mif LPL; 2-50M if advisor; 3: 5 for mutual funds and equities online, 20 for phone trades; 4: 2-7 for mutual funds, 17 for equities 33 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

36 { royalalliance.com } Your estimated time of arrival? It could be now. At Royal Alliance, our advisors are intensely motivated, fiercely independent, and consistently among the highest producers in the industry. In return, they are rewarded in the most Royal manner: with the resources of one of the country s largest networks of independent advisors; with All Ways Open Architecture SM that allows them to run their business their way; with leadingedge technology and unmatched support staff. Best of all, they re surrounded by other entrepreneurs and business owners who also achieve at exceptional levels, who share their drive, understand their challenges, and who realize that, when you join Royal Alliance, you have in essence arrived. To have a recruiter contact you, scan the barcode below with your smart phone. Ranking data is based on InvestmentNews.com s report of the largest independent broker-dealers with reps producing in excess of $100k annually. Royal Alliance Associates, Inc. is a registered broker-dealer and registered investment advisor, member FINRA and SIPC. Royal Alliance Associates, Inc. One World Financial Center New York, NY { } } PROUDLY FUELED BY all ways open ARCHITECTURE SM

37 FP50 BIGGEST INDEPENDENT BROKER-DEALERS CLIENTS & ACCOUNTS FP50 ASSET BREAKOUT % QUALI- RANK TOTAL ACCOUNT ASSETS $50 $100K ACTIVE ACCOUNTS FIED COMPANY $000s % CHANGE <$50K $99K $249K >$250K TOTAL % CHANGE ACCTS LPL Financial 373,300, Raymond James Financial Services 164,387, Commonwealth Financial Network 71,547, Wells Fargo Advisors Financial Network 63,356, NFP Advisor Services Group (& Affiliates) 49,978,340 (1.2) 10 Cambridge Investment Research 48,526, Royal Alliance Associates 45,501, Cetera Advisor Networks 44,689, Securities America 43,007, Northwestern Mutual 41,329, Waddell & Reed Financial 39,283, MML Investors Services 33,966, FSC Securities 31,895, ING Financial Partners 31,638, H.D. Vest Investment Services 30,135, SagePoint Financial 28,029, M Holdings Securities 28,025, AXA Advisors 25,125, Cetera Financial Institutions 24,780, Woodbury Financial 24,347, Transamerica Financial Advisors 23,557, First Allied Securities 23,522, Cetera Advisors 22,949, Signator Investors 21,489, Ameritas Investment 16,785, Securian Financial Services 14,695, Cetera Financial Specialists 14,466, NEXT Financial Group 14,331, CUSO Financial Services 14,239, CUNA Brokerage Services 13,421, Securities Service Network 12,471, KMS Financial Services 11,292, Invest Financial 11,126, National Planning 9,849, Allstate Financial Services 9,464, Geneos Wealth Management 9,100, Summit Brokerage Services 9,000, United Planners Financial Services 8,950, InvestaCorp 8,795, Investors Capital 8,500, Independent Financial Group 8,370, Sigma Financial 8,202, Crown Capital Securities 7,812, Berthel Fisher & Co. Financial Services 7,524, O.N. Equity Sales 7,171, Questar Capital 7,170,000 n/a 32 Cadaret Grant 6,622, Williams Financial Group 6,405, American Portfolios Financial Services 6,373, LaSalle St. Securities 6,349, ,300, ,260, , n/a n/a 591,332 (8.0) n/a n/a 569, n/a n/a 611, , ,792 (3.5) 913,328 (66.2) 421, , n/a n/a 540, , , n/a n/a 501,545 (6.5) n/a n/a 216, n/a n/a n/a n/a 60 45, n/a n/a n/a n/a n/a n/a 301,013 n/a , , , , , , , n/a n/a 99,822 n/a n/a n/a 100, ,364 (11.4) 28 74, n/a n/a 59, n/a (100.0) n/a n/a 51, , , , Broker-Dealer Guide / SourceMedia Marketing Solutions Group

38 FP50 BIGGEST INDEPENDENT BROKER-DEALERS REPS & PRODUCTION FP50 % OF REPS PRODUCING RANK TOTAL PAYOUT AVERAGE PAYOUT $50K $100K $150K- $250K COMPANY $000s % CHANGE $000s % CHANGE <$50K $99K $149K >$149K $499K >$500K LPL Financial 2,461, Ameriprise Financial 1,832, Raymond James Financial Services 856, Commonwealth Financial Network 542, AXA Advisors 459, Northwestern Mutual 385, Cambridge Investment Research 377, Wells Fargo Advisors Financial Network 357, MetLife Securities 323,666 (2.5) Royal Alliance Associates 321,240 (0.2) Securities America 317,576 (9.8) 189 (19.0) 13 Cetera Advisor Networks 307, National Planning 292, ING Financial Partners 285, Securian Financial Services 250, NFP Advisor Services Group (& Affiliates) 247,322 (3.1) Signator Investors 230, Waddell & Reed Financial 223, FSC Securities 204,974 (1.8) Princor Financial Services 201, Invest Financial 192, Woodbury Financial 189,648 (9.7) MML Investors Services 184,231 (5.2) 46 (1.8) 24 SagePoint Financial 182, First Allied Securities 180,005 (4.0) 276 (7.0) 28 Cetera Advisors 172, (6.3) 30 SII Investments 139, Cetera Financial Institutions 136, M Holdings Securities 125, Park Avenue Securities 120, American Portfolios Financial Services 118, Cadaret Grant 113, Next Financial Group 106, Triad Advisors 101, Ameritas Investment 100, CFG/H. Beck 90, ProEquities 88, (0.5) 45 Centaurus Financial 87, CUSO Financial Services 84, n/a n/a 46 Securities Service Network 83, Geneos Wealth Management 82, VSR Financial Services 79,331 (1.8) Questar Capital 73,783 n/a 114 n/a 39 Cetera Financial Specialists 73, (11.6) 50 Investors Capital 65,566 (0.6) Investment Centers of America 64, Independent Financial Group 62, KMS Financial Services 62, InvestaCorp 58, Summit Brokerage Services 58, Broker-Dealer Guide / SourceMedia Marketing Solutions Group 36

39 AVERAGE PRODUCTION TOTAL % PRODUCING % REPS REPS SERIES 6 SERIES 7 OF TOP 20% QUOTA QUOTA REPS CHANGE REPS CHANGE ADDED DROPPED REPS REPS CFPS 634, , ,000 13, , n/a n/a 1,109 12,227 n/a n/a n/a 7,449 (0.7) 7,449 (0.7) n/a n/a n/a n/a n/a 946, , ,000 4, , , , , ,000 1, , n/a n/a n/a n/a ,383 n/a n/a 5,242 (0.8) 4,673 (2.2) 990 1, , ,360 n/a n/a 7, , n/a n/a 3,242 2, ,545 n/a n/a 2, , , ,155, , ,000 1, , n/a 1,167 n/a n/a n/a 4,925 (19.2) 4,916 (5.4) n/a n/a n/a n/a n/a 662, , ,000 1,930 (0.9) 1,702 (1.0) n/a n/a n/a 680, , ,000 1, , n/a n/a 146 1, n/a n/a 1,955 (6.7) 1,710 (11.4) n/a n/a n/a n/a n/a 660, , ,000 1,460 (2.7) 1,388 (1.6) ,040 n/a 342,699 n/a n/a 3,220 (2.0) 2,335 (5.0) n/a n/a n/a n/a n/a 1,053 (6.0) 1,053 (6.0) n/a n/a n/a n/a n/a 676, , ,000 1,650 (3.1) 1,291 (4.4) , ,472 7,500 7,500 1,602 (2.9) 1,602 (2.9) n/a n/a n/a 425,462 75,000 75,000 1,875 (3.0) 1,763 (2.9) n/a n/a n/a n/a n/a 664, , ,000 1,289 (2.8) 1,064 (5.4) n/a n/a n/a 170, , ,000 2,283 (7.8) 2,049 (8.8) n/a n/a n/a 528,000 n/a n/a 1,402 (3.8) 1, , ,000 50,000 50,000 1,150 (20.7) 1,050 (22.2) n/a 198,000 n/a n/a 4,571 (9.7) 4,012 (3.5) ,930 2,723 n/a 322,600 50,000 50,000 1,650 (2.0) 1,650 (1.6) n/a n/a n/a 670, , , (6.4) n/a n/a 1, , n/a n/a n/a 732, , , (0.7) n/a n/a 1,470 (6.2) 1,343 (5.0) n/a n/a n/a n/a n/a 993,265 n/a n/a n/a n/a 2, , ,191 1, ,600 75,000 75, , , , (1.0) 804 (1.8) ,000 50, (5.0) 773 (7.0) , , , ,112 10,000 10,000 1,682 (1.7) 1,276 (2.7) n/a 405,639 50,000 25, (4.1) 740 (6.3) n/a 279,000 20,000 20,000 1, , n/a n/a n/a 484,290 50,000 50, (3.3) 622 (3.4) ,000 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 668,778 40,000 40, (2.5) 407 (3.6) , , , , , , (2.3) 260 (3.7) ,000 25,000 25, n/a n/a n/a n/a n/a 1,564 (19.5) 1,470 (11.6) n/a n/a n/a n/a n/a 432,000 n/a n/a 549 (0.5) 454 (5.4) ,000 n/a n/a 350 (3.8) 311 (2.8) , , , ,077 48,000 45, ,000 75, n/a n/a n/a n/a n/a 725, , , Broker-Dealer Guide / SourceMedia Marketing Solutions Group

40 FP50 BIGGEST INDEPENDENT BROKER-DEALERS COMMISSION PRODUCT REVENUE FP50 RANK COMMISSION REV. MUTUAL FUND REV. SECURITIES REV. STOCK REV. BOND REV. ETF REV COMPANY $000s % CHANGE $000s % CHANGE $000s % CHANGE $000s $000s $000s LPL Financial 1,768, , , ,300 83,200 n/a 2 Ameriprise Financial 1,238,271 (4.8) 552,972 (6.8) 55, n/a n/a n/a 3 Raymond James Financial Services 587,696 (0.3) 279, ,714 (16.0) 74,789 21,925 n/a 5 AXA Advisors 508, , ,000 (16.7) 3,800 1,200 n/a 6 MetLife Securities 454,146 (3.3) 34,630 (1.3) 3,092 (10.5) 2, ING Financial Partners 255,479 (0.1) 69, ,041 (22.4) 5, n/a 4 Commonwealth Financial Network 252, , ,623 (7.2) 6,792 4,545 2, MML Investors Services 244,282 (6.8) 95,473 (1.2) 4,667 (9.8) 2,306 2,361 n/a 12 NFP Advisor Services Group (& Affiliates) 242,035 (4.1) 37, ,213 (21.6) 1,345 1,440 1,057 8 Northwestern Mutual 239, , n/a n/a 4, n/a 15 National Planning 232,075 (0.4) 56,513 (1.1) 4,936 (11.7) 3,180 1, Signator Investors 226, , (15.1) 525 n/a n/a 18 Securian Financial Services 219, ,926 (6.3) 959 (19.2) n/a n/a n/a 25 Princor Financial Services 210, , ,654 (5.5) 2, n/a 21 Woodbury Financial 210,391 (5.1) 37, ,939 (30.0) 1, n/a 7 Wells Fargo Advisors Financial Network 202, ,129 (1.4) 68, ,999 22,578 n/a 9 Securities America 199,100 (10.7) 125,700 (7.1) 11,900 (1.7) 9,100 2,300 n/a 11 Royal Alliance Associates 194,749 (4.7) 68,021 (13.3) 8,860 (6.4) 6,999 1,861 n/a 13 Cetera Advisor Networks 187,252 (1.6) n/a n/a n/a n/a n/a n/a n/a 10 Cambridge Investment Research 185, , ,542 (20.9) 4,457 1,486 2, Transamerica Financial Advisors 180, , ,690 (10.7) n/a n/a n/a 17 Waddell & Reed Financial 177,057 (3.7) 118, , , Invest Financial 170, , ,975 (4.3) 6,040 2, Cetera Financial Institutions 146, n/a n/a n/a n/a n/a n/a n/a 19 FSC Securities 145,720 (3.0) 44,912 (13.6) 6,565 (10.7) 5, n/a 24 SagePoint Financial 145,601 (2.7) 50,208 (6.9) 6,720 (6.8) 6, n/a 23 First Allied Securities 141,493 (3.1) 27, ,002 (6.7) 19,774 5,919 n/a 22 H.D. Vest Investment Services 132,999 (2.5) 71,224 (1.8) 6,454 (16.3) n/a n/a n/a 34 M Holdings Securities 120, ,054 (0.1) 1,133 (16.1) 1, n/a 28 Cetera Advisors 117, n/a n/a n/a n/a n/a n/a n/a 30 SII Investments 112, , , , Park Avenue Securities 111, , ,902 (6.8) 1, n/a 32 Cadaret Grant 102,361 (0.7) 48, ,974 (15.8) 5,103 1, CUSO Financial Services 94,039 n/a n/a n/a n/a n/a n/a n/a n/a 37 CUNA Brokerage Services 93, , ,200 (82.5) 1, n/a 35 American Portfolios Financial Services 91, , ,220 (3.7) 7,359 1, Ameritas Investment 91, ,149 (1.0) 7, ,603 5,400 n/a 45 Centaurus Financial 88, , ,491 (5.4) Next Financial Group 82,994 (6.5) 23, ,399 (20.5) 6,248 2,152 n/a 41 CFG/H. Beck 82, ,559 (2.7) 3,800 (7.6) 2,394 1,405 n/a 38 ProEquities 82, , , ,702 4,319 n/a 42 Allstate Financial Services 80,658 (16.8) 17, (18.5) n/a n/a n/a 50 Investors Capital 63,843 (0.5) 15, ,161 (10.5) 10,585 4,577 n/a 49 Investment Centers of America 63, , ,368 (4.6) 2,818 1, Triad Advisors 63, ,752 (23.1) 6, ,777 1,200 n/a 53 Questar Capital 61,826 n/a 11,325 n/a 1,818 n/a 1, n/a 39 Cetera Financial Specialists 56,892 (0.1) n/a n/a n/a n/a n/a n/a n/a 43 VSR Financial Services 55,812 (3.9) 10,651 (1.9) 5, ,337 1, Summit Brokerage Services 54, , ,400 (3.6) 9,900 3,500 n/a 46 Securities Service Network 53, , ,224 (43.9) 1, Broker-Dealer Guide / SourceMedia Marketing Solutions Group 38

41 VARIABLE FIXED L-T LIFE & ALTERNATIVES HEDGE MANAGED ANNUITIES REV. ANNUITIES ANNUITIES INSURANCE REV. CARE DISABILITY REVENUE FUND REITs FUTURES $000s % CHANGE REV. $000s REV. $000s $000s % CHANGE REV. $000s REV. $000s $000s % CHANGE REV. $000s REV. $000s REV. $000s 914, ,400 98,800 30, ,300 28, , n/a n/a n/a 358,274 (7.2) n/a n/a 113, n/a n/a 106,027 (1.5) n/a n/a n/a 172, ,748 16,267 12,513 (14.1) n/a n/a 2, n/a n/a n/a 356, ,000 n/a 81,100 (7.6) n/a 81,100 11, ,300 n/a 388,535 (3.8) 366,826 21,709 19,316 (13.7) n/a 19,316 8, n/a n/a n/a 134,887 (4.0) 130,840 4,047 33, ,141 10, n/a n/a n/a 97, ,698 2,462 17, ,219 14,567 17,551 (30.5) 4 14,851 2, , ,741 4,941 n/a n/a n/a n/a n/a n/a n/a 5,646 n/a 78,395 (1.8) 77,368 1, ,190 (9.8) ,816 8,112 (11.9) 369 9, n/a n/a 67,241 n/a n/a n/a n/a 1,550 n/a n/a n/a n/a n/a 150,044 (1.3) 140,249 4,771 2,235 (20.6) 101 2,134 18, n/a 13, , , , , ,527 n/a n/a n/a n/a n/a 65, , ,236 (1.1) ,221 n/a n/a n/a n/a n/a n/a (100.0) 51,606 n/a 19, n/a 19,597 n/a n/a n/a n/a n/a 124,559 (6.1) 123, ,948 (11.8) n/a 36,948 8, n/a n/a n/a 61, ,511 n/a 2,943 (5.4) n/a 2,943 4, n/a 1,848 47,400 (26.9) 45,700 1,700 2,300 (20.7) n/a n/a 11, n/a 9,440 n/a 93,605 (1.8) 89, ,238 (23.0) n/a n/a 12, n/a 11,470 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 84, , ,314 (6.6) n/a 4,457 4, n/a 14,670 4, , n/a n/a n/a n/a n/a n/a 5, n/a n/a n/a 43,713 (21.6) 42,101 1,612 12, n/a 12,797 n/a n/a n/a n/a n/a 95, ,330 12,280 2,560 (5.5) 182 2,306 19, , n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 72, , ,181 (3.1) n/a n/a 12, n/a 12,745 n/a 71,664 (3.3) 65, ,213 (7.8) n/a n/a 8, n/a 7,028 n/a 56,102 (4.7) 54,493 1,610 6,945 (9.6) 272 6,670 4, , ,617 (2.4) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 13,169 (12.4) 7, , n/a 100, n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 69, ,364 3,124 2,334 (3.6) 81 2,251 14, n/a 9, , ,402 n/a 1,504 (28.5) n/a n/a n/a n/a n/a n/a n/a 42,656 (2.0) 41, , ,634 1,200 (32.7) n/a 1,200 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 62,900 (7.9) n/a n/a n/a (100.0) n/a n/a n/a (100.0) n/a n/a n/a 38, , ,004 (15.1) 12 1, n/a 3, ,337 (1.6) 38,251 n/a 11, n/a n/a 7, n/a 7,307 n/a 50,136 (2.9) 39,728 10,408 5, ,923 17, n/a 13,259 n/a 45,253 (5.3) 42,673 2,580 1,455 (31.0) n/a n/a 4,160 (18.7) n/a 3, , , ,827 (23.8) n/a 1,827 12, n/a n/a n/a 26,688 (4.5) 25, , n/a 3,642 6, n/a 4,622 n/a 56,263 (22.8) n/a n/a 6,003 (12.9) n/a n/a n/a n/a n/a n/a n/a 28,109 (4.2) 26,617 1, n/a n/a 4, n/a 2,867 n/a 26,536 (4.9) 21,399 3,788 5, ,216 7, n/a 5, n/a (100.0) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 44,830 n/a 22, n/a n/a n/a 3,521 n/a n/a 3, n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 16,709 (2.7) 16,709 n/a 3,928 (8.5) 261 n/a 18,741 (9.6) n/a 10, , ,100 1,900 3, n/a 3,000 2, n/a 2,500 n/a 32, ,048 1,930 n/a n/a n/a n/a 2, n/a 2,728 n/a 39 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

42 FP50 BIGGEST INDEPENDENT BROKER-DEALERS FEE-BASED REVENUE FP50 % REPS RANK FEE REV. $000s FEE REV. FROM FEE REV. FEE-BASED AUM ON PLAT COMPANY $000s % CHANGE REPS FIRM OUTSIDE AS % $000s FORM Ameriprise Financial 1,326, ,048,668 n/a 277,644 n/a n/a LPL Financial 1,054, ,900 n/a 55, ,100, Raymond James Financial Services 443, , ,203 45, ,990, Commonwealth Financial Network 374, ,325 23,459 30,405 n/a 33,400, Wells Fargo Advisors Financial Network 268, ,757 36,229 48, ,900, Northwestern Mutual 236, ,900 79,941 1, ,943, Cambridge Investment Research 230, ,476 20,761 48, ,400, Royal Alliance Associates 160, ,316 n/a 53, ,023, Securities America 158,500 (8.2) 73,000 n/a 80, ,561, Cetera Advisor Networks 137, n/a n/a n/a n/a n/a Waddell & Reed Financial 122, , ,716 n/a ,135, NFP Advisor Services Group (& Affiliates) 104, ,165 5,701 39, ,766, AXA Advisors 97, n/a n/a 95, ,700, National Planning 87, ,489 n/a 53, ,483, FSC Securities 87, ,027 n/a 19, ,910, H.D. Vest Investment Services 87, ,210 n/a 4,805 n/a 6,757,276 n/a 28 Cetera Advisors 72, n/a n/a n/a n/a n/a First Allied Securities 68,072 (3.7) 68,072 n/a n/a n/a 6,266, ING Financial Partners 67, ,157 n/a 10, ,179, MML Investors Services 66, n/a n/a 66,781 n/a 11,135, SagePoint Financial 64, ,193 n/a 22, ,775, Securian Financial Services 55, ,097 n/a 14,054 n/a n/a n/a 40 Triad Advisors 53, n/a n/a n/a n/a n/a Transamerica Financial Advisors 52, n/a n/a n/a n/a 6,183,141 n/a 6 MetLife Securities 52, ,621 20,253 7,318 n/a 5,219,255 n/a 48 Geneos Wealth Management 44, ,711 n/a 25, ,500, Invest Financial 43, ,011 n/a 24, ,538, Cetera Financial Specialists 41,643 (0.5) n/a n/a n/a n/a n/a SII Investments 40, ,695 n/a 26, ,326, American Portfolios Financial Services 38, ,692 n/a 12, ,480, Park Avenue Securities 36, ,070 5,698 26,064 n/a 4,565, VSR Financial Services 36, ,046 n/a 16,634 n/a 3,792, Securities Service Network 32, ,092 n/a 7,852 n/a 6,199, Next Financial Group 31,829 (0.7) 16,551 n/a 15,278 n/a 3,248, Signator Investors 31, n/a n/a 31,557 n/a n/a Princor Financial Services 30, ,216 n/a 1,703 n/a 2,897, KMS Financial Services 30, ,249 n/a 7,917 n/a 3,439, Woodbury Financial 29, ,539 n/a 12, ,273, PlanMember Securities 29, ,249 4, ,600, Cadaret Grant 28, , ,987 n/a 2,821, United Planners Financial Services 27, ,935 n/a n/a ,598, Ameritas Investment 26, ,592 n/a 9, ,081, Sigma Financial 21, ,397 n/a 7,982 n/a 1,908, Williams Financial Group 20, ,200 n/a 7,000 n/a 1,655, CFG/H. Beck 19, ,917 n/a n/a ,366, ProEquities 18, ,262 2,566 8, ,075, Independent Financial Group 17, ,202 n/a 10, ,286, Centaurus Financial 16, ,544 n/a 9, ,945, Investment Center 16, ,199 n/a 4,066 n/a 1,400, Investors Capital 16, ,223 1,324 1, ,500, Broker-Dealer Guide / SourceMedia Marketing Solutions Group 40

43 FP50 BIGGEST INDEPENDENT BROKER-DEALERS CORPORATE STAFF FP50 RANK FULL-TIME LICENSED REGISTERED OFFICE OF COMPANY STAFF PROFESSIONALS OFFICES SUPERVISORY JUR. RECRUITERS COMPLIANCE LPL Financial 2, ,456 4, Raymond James Financial Services 2,605 4,749 1,996 1, Cetera Financial Institutions Commonwealth Financial Network 540 1,729 1, Cambridge Investment Research , Northwestern Mutual Cetera Advisor Networks Cetera Advisors Cetera Financial Specialists Securities America , H.D. Vest Investment Services First Allied Securities n/a Lincoln Investment Woodbury Financial Royal Alliance Associates FSC Securities SagePoint Financial ING Financial Partners 201 3,220 1, Waddell & Reed Financial MML Investors Services 193 4,571 1, National Planning Invest Financial , Transamerica Financial Advisors Signator Investors 180 1, NFP Advisor Services Group (& Affiliates) Next Financial Group Ameritas Investment Allstate Financial Services 134 7,566 6, PlanMember Securities Securian Financial Services Park Avenue Securities Cadaret Grant National Securities ProEquities J.P. Turner Sammons Securities Sigma Financial CFG/H. Beck Williams Financial Group Princor Financial Services Investment Centers of America Wells Fargo Advisors Financial Network American Portfolios Financial Services Questar Capital SII Investments Berthel Fisher & Co. Financial Services Larson Financial Securities Summit Brokerage Services VSR Financial Services InvestaCorp Broker-Dealer Guide / SourceMedia Marketing Solutions Group

44 FP50 BIGGEST INDEPENDENT BROKER-DEALERS SMALLER FIRMS TOTAL REVENUES COMMISSION REVENUE FEE REVENUE OTHER REVENUE COMPANY $000s % CHANGE $000s % CHANGE $000s % CHANGE $000s % CHANGE Sigma Financial 80, , , ,627 (1.0) Independent Financial Group 76, , , , InvestaCorp 74, , , , Summit Brokerage Services 74, , , , Questar Capital 73, ,826 n/a 8,390 n/a 3,000 n/a KMS Financial Services 70, ,595 (0.1) 30, ,449 (15.1) Williams Financial Group 70, , , ,750 (22.3) United Planners Financial Services 69, ,792 (8.9) 27, n/a n/a J.P. Turner 66, , n/a n/a 13,232 (5.6) Berthel Fisher & Co. Financial Services 55, , , , O.N. Equity Sales 54, , ,439 (41.1) 2,249 n/a J.W. Cole Financial 51, , , n/a n/a PlanMember Securities 49, , , (15.2) Investment Center 47,003 (2.1) 30,596 (1.9) 16, (1.9) Kovack Securities 41, , , n/a n/a Sammons Securities 40, , n/a n/a 8, Sterne Agee Financial Services 39, , , Crown Capital Securities 35, , , , LaSalle St. Securities 32, , ,649 (2.4) Prospera Financial Services 31, , , , Strategic Financial Alliance 30, , , , Harbour Investments 30, , , n/a Capital Investment 26, , , Founders Financial Securities 16, ,533 (27.6) 8, n/a n/a Broker Dealer Financial Services 16,289 (6.5) 13,023 (5.9) 2, ,141 (25.5) Larson Financial Securities 11, , n/a n/a n/a n/a WRP Investments n/a Lincoln Investment n/a PRODUCING REPS TOTAL PAYOUT AVG. PAYOUT PRODUCTION $ COMPANY TOTAL % CHANGE REPS $000s TOTAL % CHANGE AVG. TOP 20% QUOTA Sigma Financial Independent Financial Group InvestaCorp Summit Brokerage Services Questar Capital KMS Financial Services Williams Financial Group United Planners Financial Services J.P. Turner Berthel Fisher & Co. Financial Services O.N. Equity Sales J.W. Cole Financial PlanMember Securities Investment Center Kovack Securities Sammons Securities Sterne Agee Financial Services Crown Capital Securities LaSalle St. Securities Prospera Financial Services Strategic Financial Alliance Harbour Investments Capital Investment Founders Financial Securities Broker Dealer Financial Services Larson Financial Securities WRP Investments Lincoln Investment 607 (2.1) 687 n/a 112, ,676 50, , , , , , , n/a 75, , , , , , ,215 n/a 293,000 25, , , ,077 48, (2.1) , ,766 (11.2) 760, , (1.8) , , ,750 75, (20.5) ,384 n/a n/a 525,000 10, (2.7) , , ,000 50, ,285 63, ,157 10, , , n/a 100, ,672 97, ,834 35, , , n/a 100, (5.2) , , ,875 50, ,898 63, ,713 25, , , , , , , ,070 50, , ,243 (0.0) 250, , , ,051 (5.3) n/a n/a , , ,112 n/a ,520 n/a n/a 410,000 60, , , ,445 75, (4.8) 60 n/a 296, ,520 50, (7.5) ,030 49, ,941 25, n/a n/a n/a n/a n/a n/a n/a 350 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Broker-Dealer Guide / SourceMedia Marketing Solutions Group 42

45 NETWORKS LADENBURG THALMANN ADVISOR CETERA NATIONAL FINANCIAL SECURIAN COMPANY GROUP FINANCIAL GROUP PLANNING HOLDINGS SERVICES FINANCIAL GROUP Headquarters New York Los Angeles Santa Monica, Calif. Miami St. Paul, Minn. Website advisorgroup.com cetera.com jackson.com/about/business ladenburg.com securian.com Chief Executive Larry Roth Valerie Brown Cliff Jack, interim Richard Lampen Bob Senkler Parent Company AIG Life and Retirement Cetera Financial Group Prudential plc Ladenburg Thalmann Financial Services Securian Financial Services Broker-Dealer Firms FSC Securities Royal Alliance SagePoint Financial Woodbury Cetera Financial Specialists Cetera Financial Institutions Cetera Advisor Networks Cetera Advisors National Planning SII Investments Invest Financial Investment Centers of America Securities America Investacorp Triad Advisors Securian Financial Services CFG/H. Beck Total B-D Revenue 1,131,739, ,895, ,105, ,289, ,942,902 % Change (1.5) (2.9) 3.8 Total B-D Net Capital 64,803,761 27,972,000 n/a 11,490,711 n/a Total B-D Net Excess Capital 63,803,761 26,273,000 n/a 13,392,998 n/a LADENBURG THALMANN ADVISOR CETERA NATIONAL FINANCIAL SECURIAN REPS GROUP FINANCIAL GROUP PLANNING HOLDINGS SERVICES FINANCIAL GROUP Total Reps % Change 6,019 (6.1) 6,198 (4.9) 3,817 (2.9) 2, ,943 (5.1) Producing Reps % Change 5,466 (6.9) 5,599 (4.0) 3,458 (0.8) 2, ,793 (6.1) Total Payouts % Change 898,816,881 (2.3) 689,572, ,556, ,549,164 (2.8) 341,129, Average Rep Payout % Change 672, , , ,514 (4.6) 360, LADENBURG THALMANN ADVISOR CETERA NATIONAL FINANCIAL SECURIAN PRODUCT REVENUES GROUP FINANCIAL GROUP PLANNING HOLDINGS SERVICES FINANCIAL GROUP Total Commissions % Change 696,460,598 (4.1) 508,279, ,382, ,182,339 (2.6) 302,675, Mutual Funds % Change 201,041,788 (8.6) n/a n/a 143,080, ,500,571 (7.4) 60,485,590 (4.8) Securities % Change 24,084,960 (10.2) n/a n/a 20,738,000 (5.5) 37,731, ,758,497 (10.2) Annuities % Change 362,093,176 (3.2) n/a n/a 341,318, ,081,512 (36.3) 104,384, Insurance % Change 50,580,302 (11.8) n/a n/a 12,952, ,300,000 (20.7) 120,063,058 (1.5) Alternatives % Change 41,685, n/a n/a 60,294, ,227, ,983, Total Fee Revenue % Change 343,235, ,599, ,915, ,034,502 (2.4) 75,162, Broker-Dealer Guide / SourceMedia Marketing Solutions Group

46 FP50 BIGGEST INDEPENDENT BROKER-DEALERS TOP 10 LISTS REVENUE GROWTH FP50 TOTAL % RANK COMPANY REV. $000s GROWTH Transamerica Financial Advisors 232, Cetera Advisors 210, Triad Advisors 122, CUSO Financial Services 114, Wells Fargo Advisors Financial Network 596, Cambridge Investment Research 461, Geneos Wealth Management 93, Cetera Financial Institutions 192, Centaurus Financial 109, Commonwealth Financial Network 712, PAYOUT GROWTH FP50 AVERAGE % RANK COMPANY PAYOUT $000s GROWTH M Holdings Securities Commonwealth Financial Network Princor Financial Services Woodbury Financial Cetera Financial Institutions CFG/H. Beck Next Financial Group Waddell & Reed Financial Securities Service Network Northwestern Mutual HIGH-END REPS (TOP 20% OF REPS) FP50 AVERAGE % REPS RANK COMPANY APRODUCTION $ >$150K Wells Fargo Advisors Financial Network 1,155, Summit Brokerage Services 725, Commonwealth Financial Network 945, Raymond James Financial Services 946, VSR Financial Services 922, First Allied Securities 670, Geneos Wealth Management 938, CUSO Financial Services 648, Investment Centers of America 638, SII Investments 732, HIGH-END ACCOUNTS FP50 TOTAL CLIENT % ACCTS. RANK COMPANY ASSETS $000s >$100K LaSalle St. Securities 6,349, Raymond James Financial Services 164,387, Securities Service Network 12,471, National Planning 9,849, Cadaret Grant 6,622, Securities America 43,007, Northwestern Mutual 41,329, American Portfolios Financial Services 6,373, Commonwealth Financial Network 71,547, Invest Financial 11,126, FEE-BASED MIX FP50 FEE REVENUE % OF RANK COMPANY $000s BUSINESS Commonwealth Financial Network 374, Cambridge Investment Research 230, Geneos Wealth Management 44, Ameriprise Financial 1,326, Wells Fargo Advisors Financial Network 268, Triad Advisors 53, Northwestern Mutual 236, Royal Alliance Associates 160, Cetera Financial Specialists 41, Securities America 158, NET CAPITAL FP50 NET CAPITAL NET EXCESS RANK COMPANY $000s CAPITAL $000s LPL Financial 58,500 51,100 Woodbury Financial 30,374 30,124 Waddell & Reed Financial 24,690 24,440 AXA Advisors 22,928 21,181 NFP Advisor Services Group (& Affiliates) 21,273 18,351 Commonwealth Financial Network 18,078 12,669 Allstate Financial Services 17,147 16,897 Cambridge Investment Research 16,123 14,096 H.D. Vest Investment Services 15,040 13,663 Cetera Financial Institutions 14,542 13,887 Broker-Dealer Guide / SourceMedia Marketing Solutions Group 44

47 EXPLANATORY NOTES The results of Financial Planning s 28th annual survey of independent broker-dealers are based on data provided by 78 participating firms. A few of the firms we contacted did not respond to our request for information. Also, firms we determined were not independent were excluded. In these instances, the deciding factors usually were whether reps could act independently in their practices, effectively owned their client book or had independent contractor status. Financial Planning relied on the firms to ensure the accuracy of the information they submitted. We worked to verify data when possible and list additional details below that warranted further explanation. The data we list for 2011 do not always match last year s survey because some companies restated the numbers they submitted last year. All figures reflect calendar-year 2012 and 2011 numbers. Total revenues drive the FP50 charts. The Smaller Firms page highlights the 28 firms whose revenues fell below those of the FP50. Firms with less than $7 million in total revenues, or those that would not provide significant information, were not included. Explanatory Note Northwestern Mutual is the marketing name for Northwestern Mutual Life Insurance and its subsidiaries. Assets listed represent programs of Northwestern Mutual Wealth Management Co. and Investment Services. Total Revenues Total revenues are derived from all commission, fee and other revenues. Other firm revenue is from non-rep sources (ancillary businesses, interest, etc.). Reps & Production Producing reps are those who were active independent contractors as of Dec. 31 of each year and do not include registered office staff and other assistants. Total payout to reps includes bonuses and any other compensation. Average payouts were calculated based on total payout divided by the number of year-end producing reps. The average payout may be lower than the actual average production, since it includes reps who joined the firm in the last year. Commission & Fee-Based Product Revenue All commission figures are net revenues to the B-D firm (not gross sales). Alternative products include hedge funds, commodities, managed futures and real estate investment trusts. The REIT figures are included in the total alternative revenue amount. Fee-based revenues are broken out, where possible, by those received from accounts managed by the reps, by the broker-dealer firm or by third-party vendors. Networks This chart shows consolidated results for six major parent companies that own multiple broker-dealer units. Only B-Ds that participated in the survey are listed. Corporate Staff The full-time staff count is for the headquarters of the B-D only and does not include shared staff employed by a parent company. Licensed professionals are staff members who hold securities licenses. Recruiters and compliance officials are full-time, nonclerical B-D employees. Services & Fees Yes and no questions on service offerings, as well as ticket charges, were starting points for information; details vary. Clients & Accounts Active accounts and assets reflect those held at a B-D or its custody/clearing firm. Active accounts are those that generate statements and hold assets. Figures don t reflect assets held at mutual fund or variable annuity companies. Qualified plan accounts are IRAs, Roth IRAs and other retirement plans held in custody for clients. As always, we value your comments. Please Financial Planning Editor-in-Chief Scott Wenger at [email protected]. 45 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

48 RESOURCE DIRECTORY Allstate Financial Services 2920 S. 84th Street, Lincoln, NE Phone: URL: allstate.com Year founded: 1999 CEO: Robert Becker American Portfolios Financial Services 4250 Veterans Memorial Hwy. Suite 420E Holbrook, NY Phone: URL: Year founded: 2001 CEO: Lon T. Dolber Broker Dealer Financial Services 140 S. 68th Street, Suite 2200 West Des Moines, IA Phone: URL: Year founded: 1979 CEO: Timothy J. Lyle Ameriprise Financial Minneapolis, MN Phone: URL: ameriprise.com Year founded: 1894 CEO: James Cracchiolo While other broker dealers focus on recruiting top producers, Centaurus focuses on turning average producers into top producers! We assist them in reaching this goal by offering our nationally acclaimed Quantum Leap Workshops at no charge. We also provide financial and other assistance to Reps in the purchase of financial planning practices. Our Reps have dramatically increased their revenue organically by utilizing these value added tools. STATS AVERAGE PAYOUT: 90% NUMBER OF REPS: 650 CLEARING FIRM: Pershing, TD Ameritrade E & O COVERAGE: $2, YEAR FOUNDED: 1992 CEO J. Ronald King RECRUITING Tesh Lokumal EXECUTIVE: PARENT COMPANY: Federation of Financial Services CONTACT Kathy Swindell 2300 E. Katella Ave., Suite #200 Anaheim, CA Fax: Ameritas Investment 5900 O Street Lincoln, NE Phone: URL: aicinvest.com Year founded: 1983 CEO: Salene Marie Hitchcock-Gear AXA Advisors 1290 Ave of the Americas New York, NY Phone: URL: axa-equitable.com Year founded: 1999 CEO: Mark Pearson Berthel Fisher & Company Financial Services 701 Tama Street Marion, IA Phone: URL: Year founded: 1987 CEO: Thomas J. Berthel cfd Investments is a Broker/Dealer dedicated to providing Financial Advisers with the nececessary support, tools, techniques, quality financial products, and technologies for the achievement of their clients s goals and objectives through a team of home office personnel committed to serving advisers in a Christ-like manner. STATS AVERAGE PAYOUT: 75% to 92% Average is 86.5% NUMBER OF REPS: 175 Producing Advisers CLEARING FIRM: RBC and NFS E & O COVERAGE: $1, YEAR FOUNDED: 1990 CEO/PRESIDENT: Brent A. Owens RECRUITING Brent A. Owens EXECUTIVE: CONTACT Brent A. Owens, President 2704 South Goyer, Kokomo, IN Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group 46

49 RESOURCE DIRECTORY Cadaret Grant One Lincoln Center, 5th Floor Syracuse, NY Phone: URL: Year founded: 1985 CEO: Arthur Grant Cambridge Investment Research 1776 Pleasant Plain Rd. Fairfield, IA Phone: URL: Year founded: 1981 CEO: Eric Schwartz Cetera Financial Specialists 200 N. Martingale Road Schaumburg, IL Phone: URL: Year founded: 1981 CEO: Enrique M. Vasquez Capital Investment 17 Glenwood Ave. Raleigh, NC Phone: URL: Year founded: 1984 Highest in Independent Advisor Satisfaction Among Financial Investment Firms, Three Times in a Row. For more information on the broker/ dealer-ria that s client-forward, visit Commonwealth Financial Network received the highest numerical score in the independent advisor segment in the proprietary J.D. Power and Associates 2010, 2012, and 2013 Financial Advisor Satisfaction Studies SM study based on 2,547 total responses and measures overall financial advisor satisfaction among advisors registered with the Financial Industry Regulatory Authority (FINRA) investment firms. Proprietary study results are based on experiences and perceptions of financial advisors surveyed in October 2012 February Your experiences may vary. Visit STATS AVERAGE PAYOUT: 91% NUMBER OF REPS: 1,445 CLEARING FIRM: National Financial Services E & O COVERAGE: $2, YEAR FOUNDED: 1979 CEO/PRESIDENT: Wayne Bloom RECRUITING Andrew Daniels EXECUTIVE: CONTACT The Commonwealth Field Development Team 29 Sawyer Road Waltham, Mass Centaurus Financial 2300 East Katella Ave, Suite 200 Anaheim, CA Phone: URL: Year founded: 1992 CEO: Ron King Cetera Advisor Networks 200 North Sepulveda Blvd, Suite 1300 El Segundo, CA Phone: URL: Year founded: 1983 CEO: Douglas King Cetera Advisors 4600 S. Syracuse St., Suite 600 Denver, CO URL: Year founded: 1981 CEO: Brett L. Harrison Cetera Financial Institutions 400 1st Street South, Suite 300 St. Cloud, MN Phone: URL: Year founded: 1984 CEO: Catherine M. Bonneau FFS, LLC is a private community of like-minded entrepreneurs who understand the benefits of shared resources and shared values. Through our full suite of B/D services, unique vision, and uncommon approach, we empower our private community to understand the importance of RELATIONSHIP in all we do. Begin your discovery today! STATS AVERAGE PAYOUT: $330, NUMBER OF REPS: 60 CLEARING FIRM: Pershing & TCA PERSHING & TCA E & O COVERAGE: $1million / $5million YEAR FOUNDED: 2006 CEO/PRESIDENT: Bradley Shepherd RECRUITING Jim DeCarlo EXECUTIVE: CONTACT Jim DeCarlo 1020 Cromwell Bridge Rd. Towson, MD x1234 Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group

50 RESOURCE DIRECTORY CFG/H. Beck 6600 Rockledge Drive, Sixth Floor Bethesda, MD Phone: URL: Year founded: 1984 CEO: Eric Meyers Commonwealth Financial Network 29 Sawyer Road Waltham, MA 2453 Phone: URL: Year founded: 1979 CEO: Wayne Bloom Founders Financial Securities 1020 Cromwell Bridge Rd. Towson, MD Phone: Year founded: 2006 CEO: Michael O. Brooks At FSC, our advisors benefit from the resources we offer as part of one of America s largest networks of independent advisors, combined with an advisor-driven approach that puts the home in home office. We have over 50 years of success supporting advisors with an entrepreneurial spirit just like yours. STATS NUMBER OF REPS: 1,100 AVERAGE PAYOUT: Up to 95% CLEARING FIRM: Pershing, LLC and National Financial E&O COVERAGE: $ under the Corporate IRA and $ under an Independent RIA per month YEAR FOUNDED: 1958 CEO/PRESIDENT: Jerry Murphy RECRUITING Ed Dudley EXECUTIVE: PARENT COMPANY: Advisor Group CONTACT Ed Dudley 2300 Windy Ridge Parkway Atlanta, GA Fax: Crown Capital Securities 725 Town & Country Rd., Suite 530 Orange, CA Phone: URL: securities.com Year founded: 1999 CEO: Darol Kenneth Paulsen CUNA Brokerage Services 2000 Heritage Way Waverly, IA Phone: URL: CEO: Jim Metz CUSO Financial Services Meanley Drive, 1st Floor San Diego, CA Phone: URL: Year founded: 1996 CEO: Valorie Seyfert First Allied Securities 655 W. Broadway, 12th Floor San Diego, CA Phone: URL: Year founded: 1994 CEO: Joel Marks Harbor Financial is an independent broker dealer and SEC registered investment advisory firm. Harbor is continually developing innovative solutions for the financial professional and providing independence from the wire houses. In addition to its clearing firm, Harbor maintains a relationship with TD Ameritrade to provide its advisors with additional options and services to best support their clients needs. STATS AVERAGE PAYOUT: 90% NUMBER OF REPS: 76 CLEARING FIRM: Raymond James & Associates E & O COVERAGE: $200 per month YEAR FOUNDED: 2004 CEO/PRESIDENT: Marc S. Whitehead RECRUITING John Coleman EXECUTIVE: CONTACT Recruiting Department 11 N. Water Street Suite Mobile, AL Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group 48

51 RESOURCE DIRECTORY FSC Securities 2300 Windy Ridge Parkway Atlanta, GA Phone: URL: Year founded: 1958 CEO: Jerry Murphy Geneos Wealth Management 9055 E. Mineral Circle, Suite 200 Centennial, CO Phone: URL: Year founded: 2002 CEO: Russell R. Diachok Invest Financial 8745 Henderson Road, Suite 300 Tampa, FL Phone: URL: Year founded: 1982 CEO: Steve Dowden H.D. Vest Investment Services 6333 North State Highway 161, 4th floor Irving, TX Phone: URL: Year founded: 1983 CEO: Roger Ochs Founded in 1982, INVEST Financial is a full-service multi-channel broker/ dealer. As an industry leader in both the independent representative channel and financial institution channel, INVEST prides itself in its commitment to provide Financial Advisors with the essential tools, products, practice management support, resources and technology to service their clients effectively. Harbour Investments 575 D Onofrio Drive, Suite 300 Madison, WI Phone: URL: Year founded: 1987 CEO: Nick W. Sondel Independent Financial Group, LLC (IFG) is an independent broker-dealer based in San Diego. Our promise: outstanding service and access to the tools that help advisors maintain their competitive edge. It is the relationship with our representatives, employees & families that drive us not to be the biggest, but the best. STATS AVERAGE PAYOUT: 89% 95% NUMBER OF REPS: 1,188 CLEARING FIRM: Pershing LLC or National Financial Services E & O COVERAGE: Included in monthly fee of $ YEAR FOUNDED: 1982 CEO/PRESIDENT: Steve Dowden RECRUITING EXECUTIVE: PARENT COMPANY (IF APPLICABLE): CONTACT Sharon Flaspohler and Bessie Savery National Planning Holdings Business Development Team 8745 Henderson Road, Suite 300 Tampa, FL Fax: Independent Financial Group High Bluff Drive, Suite 200 San Diego, CA Phone: URL: Year founded: 2003 CEO: Joe H. Miller ING Financial Partners 909 Locust St. Des Moines, IA Phone: URL: Year founded: 1968 CEO: Karl S. Lindberg STATS AVERAGE PAYOUT: $192,000 NUMBER OF REPS: 500 CLEARING FIRM: Pershing E & O COVERAGE: $2mm per claim $10mm aggregate YEAR FOUNDED: 2003 CEO/PRESIDENT: Joe Miller RECRUITING EXECUTIVE: CONTACT David Fischer, Managing Director David Fischer, Managing Director High Bluff Drive, Suite 200 San Diego, CA Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group

52 RESOURCE DIRECTORY Investacorp 4400 Biscayne Blvd., 11th Floor Miami, FL Phone: URL: Year founded: 1978 CEO: Patrick Farrell Investment Center 1420 US Hwy 206 Bedminster, NJ 7921 Phone: URL: Year founded: 1986 CEO: Ralph DeVito KMS Financial Services 2001 Sixth Avenue, Suite 2801 Seattle, WA Phone: URL: Year founded: 1971 CEO: Mark Hamby Investment Centers of America 212 North Fourth Street Bismarck, ND Phone: URL: Year founded: 1985 CEO: Greg Gunderson Your life. Your business. Your way. Most independent firms offer comparable products, services and payout. So, how do you sort through the sameness to find a firm whose people take a true interest in your success, explore your ideas and help you build your business your way? By contacting us. Investors Capital 6 Kimball Lane, Suite 150 Lynnfield, MA 1940 Phone: URL: investorscapital.com Year founded: 1992 CEO: Timothy B. Murphy NEXT Financial Group, Inc. ( NEXT ) was founded by a group of like-minded advisors who wanted to experience true independence and redefine the broker-dealer and advisor relationship. For the past 13 years, NEXT has supported its advisors and provided invaluable resources by empowering the principles of vision, values and voice to change destinies. STATS AVERAGE PAYOUT: 90% NUMBER OF REPS: 383 CLEARING FIRM: Apex Clearing Corp. (Advisory accounts are custodied at TD Ameritrade Institutional) E & O COVERAGE: $250 per month YEAR FOUNDED: 1997 COO: Dean Vernoia RECRUITING Al Pierantozzi EXECUTIVE: CONTACT Al Pierantozzi [email protected] One Buckhead Plaza 3060 Peachtree Rd NW, 11th Floor, Atlanta, GA J.P. Turner One Buckhead Plaza 3060 Peachtree Rd NW, 11th Fl Atlanta, GA Phone: URL: Year founded: 1997 CEO: Tim McAfee & Bill Mello J.W. Cole Financial 6928 W. Linebaugh Ave. Tampa, FL Phone: URL: joinjw-cole.com Year founded: 2002 CEO: R.J. Wood STATS AVERAGE PAYOUT: 89% NUMBER OF REPS: 773 CLEARING FIRM: Pershing LLC E & O COVERAGE: $ annually YEAR FOUNDED: 1998 CEO/PRESIDENT: Barry Knight RECRUITING Barry Knight EXECUTIVE: PARENT COMPANY (IF APPLICABLE): CONTACT NEXT Financial Holdings, Inc. Barry Knight 2500 Wilcrest Drive, Suite 620 Houston, TX x 4060 Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group 50

53 RESOURCE DIRECTORY Kovack Securities 6451 North Federal Highway, Suite 1201 Ft. Lauderdale, FL Phone: URL: Year founded: 1997 CEO: Ronald J. Kovack Larson Financial Securities 1015 Corporate Square Dr., Suite 300 St Louis, MO Phone: URL: Year founded: 2010 CEO: Paul Larson MetLife Securities 1095 Sixth Avenue New York, NY Phone: URL: metlifesecurities.com Year founded: 1983 CEO: Steven A. Kandarian LaSalle St. Securities 940 N Industrial Drive Elmhurst, IL Phone: URL: Year founded: 1974 CEO: Jack McDermott For 3 decades, PlanMember Securities specializes in supporting independent advisors and agencies in growing fee-based practices, with a retirement plan focus. Offering competitive investment programs & payouts, proven marketing campaigns, robust technology and a quality transition team, PlanMember s advisors are supported by 125 home office staff resulting in excellent service and efficiencies. STATS AVERAGE PAYOUT: 88% NUMBER OF REPS: 387 CLEARING FIRM: Self/Pershing LLC E & O COVERAGE: $1, YEAR FOUNDED: 1982 CEO/PRESIDENT: Jon Ziehl RECRUITING Al Close, Senior VP EXECUTIVE: PARENT COMPANY (IF APPLICABLE): CONTACT PlanMember Financial Corporation Wesley Dickerson 6187 Carpinteria Ave Carpinteria, CA x2556 Fax: Lincoln Investment 218 Glenside Avenue Wyncote, PA Phone: URL: Year founded: 1968 CEO: Ed Forst LPL Financial 75 State Street Boston, MA 2109 Phone: URL: Year founded: 1968 CEO: Mark S Casady M Holdings Securities 1125 NW Couch St, Suite 900 Portland, OR Phone: URL: Year founded: 2000 CEO: Ken Ehinger At Prospera, we understand that everyone has a unique definition of success. That s why our guiding principle is Success Your Way. It means you don t work for Prospera, we work for you. STATS NUMBER OF REPS: 130 CLEARING FIRM: First Clearing Corporation, LLC E & O COVERAGE: $2, YEAR FOUNDED: 1982 CEO/PRESIDENT: David Stringer RECRUITING EXECUTIVE: CONTACT Tarah Carlow or Tony Montanari Tarah Carlow or Tony Montanari 5429 LBJ Freeway Ste 400 Dallas, TX Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group

54 RESOURCE DIRECTORY MML Investors Services 1295 State Street Springfield, MA Phone: URL: mmlinvestors.com Year founded: 1981 CEO: Michael R. Fanning National Planning 401 Wilshire Blvd., Suite 1100 Santa Monica, CA Phone: URL: Year founded: 1998 CEO: Scott Romine O.N. Equity Sales One Financial Way Cincinnati, OH Phone: URL: Year founded: 1968 National Securities 120 Broadway, 26th Floor New York, NY Phone: URL: nationalsecurities.com Year founded: 1947 CEO: Mark Harry Goldwasser Questar Capital Corporation gives you the freedom to succeed. With a culture of service and support, our expansive product shelf, and the strength of our affiliation with Allianz Life Insurance Company of North America, we offer independent representatives the freedom and flexibility to run your business your way. Next Financial Group 2500 Wilcrest Drive, #620 Houston, TX Phone: URL: Year founded: 1999 CEO: Gordon D Angelo Having the strength and stability of Raymond James behind you means you can focus on your clients and your business. You own your book of business and can develop your unique brand. We give you the technology, control, flexibility and support to run and grow your practice. Learn more at advisorchoice.com. STATS AVERAGE PAYOUT: 86% NUMBER OF REPS: 637 CLEARING FIRM: Pershing LLC E & O COVERAGE: 1 million aggregate coverage YEAR FOUNDED: 1997 CEO/PRESIDENT: Kevin S. Bachmann CLU, ChFC RECRUITING Ryan Johnson EXECUTIVE: PARENT COMPANY: Allianz Life Insurance Company of North America CONTACT Kevin S. Bachmann CLU, ChFC 5701 Golden Hills Drive Minneapolis MN NFP Advisor Services Group (& Affiliates) 1250 Capital of Texas Highway Building 2, Suite 125 Austin, TX Phone: URL: Year founded: 1966 CEO: James Poer Northwestern Mutual 720 E. Wisconsin Avenue Milwaukee, WI Phone: URL: Year founded: 1968 CEO: John E. Schlifske STATS AVERAGE PAYOUT: % NUMBER OF REPS: 3,250 CLEARING FIRM: Raymond James & Associates E & O COVERAGE: Yes YEAR FOUNDED: 1974 PRESIDENT: Scott Curtis RECRUITING Barry Papa EXECUTIVE: PARENT COMPANY: Raymond James Financial CONTACT Raymond James, AdvisorChoice 880 Carillon Parkway Saint Petersburg, FL Broker-Dealer Guide / SourceMedia Marketing Solutions Group 52

55 RESOURCE DIRECTORY Park Avenue Securities 7 Hanover Square New York, NY Phone: URL: CEO: Jill Cooley PlanMember Securities 6187 Carpinteria Ave Carpinteria, CA Phone: URL: joinplanmember.com Year founded: 1982 CEO: Jon Ziehl Raymond James Financial Services 880 Carillon Parkway Saint Petersburg, FL Phone: URL: Year founded: 1974 CEO: Paul Reilly Royal Alliance is built for entrepreneurial advisors driven to grow a superior financial practice. When you join us, you join a successful group of achievers who share your goals, understand your challenges, and who appreciate the resources, capital, technology and experience of one of America s largest networks of independent advisors. Princor Financial Services 711 High Street Des Moines, IA Phone: URL: Year founded: 1968 CEO: Ralph C. Eucher ProEquities 2801 Highway 280 South Birmingham, AL Phone: URL: Year founded: 1985 CEO: Mike Mungenast SagePoint advisors enjoy the best of both worlds big-firm resources with a small-firm feel. Share the advantages of being part of one of the largest independent broker-dealer networks in the industry, with a nationally recognized technology platform, as well as the tools and flexibility to grow your business, your way. STATS NUMBER OF REPS: 1,793 AVERAGE PAYOUT: Up to 95% CLEARING FIRM: Pershing, LLC and National Financial Services E&O COVERAGE: Monthly Affiliation fee, including E&O, $ under the Corporate RIA and $ under an Independent RIA YEAR FOUNDED: 1989 CEO/PRESIDENT: Arthur Tambaro RECRUITING Kevin Beard EXECUTIVE: PARENT COMPANY: Advisor Group CONTACT Kevin Beard One World Financial Center New York, NY Fax: Prospera Financial Services 5429 LBJ Freeway Ste 400 Dallas, TX Phone: URL: joinprospera.com Year founded: 1983 CEO: David Stringer Questar Capital 5701 Golden Hills Drive Minneapolis, MN Phone: URL: Year founded: 1997 CEO: Kevin Bachmann STATS NUMBER OF REPS: 1,625 AVERAGE PAYOUT: N/A CLEARING FIRM: Pershing, LLC and National Financial E&O COVERAGE: $ under the Corporate RIA and $ under an Independent RIA per month YEAR FOUNDED: 1970 CEO/PRESIDENT: Jeffery Auld RECRUITING Dee Morgan EXECUTIVE: PARENT COMPANY: Advisor Group CONTACT Dee Morgan 2800 N. Central Avenue Phoenix, AZ Toll Free: Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group

56 RESOURCE DIRECTORY Royal Alliance Associates One World Financial Center, Floor 15 New York, NY Phone: URL: Year founded: 1989 CEO: Art Tambaro SagePoint Financial 2800 North Central Avenue Phoenix, AZ Phone: URL: Year founded: 1970 CEO: Jeffrey Auld Sigma Financial 4261 Park Road Ann Arbor, MI Phone: URL: Year founded: 1983 CEO: Jerome Rydell Sammons Securities 4261 Park Road Ann Arbor, MI Phone: URL: Year founded: 2001 CEO: Michael M. Masterson Since 1983, SSN has provided independence to independent advisors through higher payouts, awardwinning service and support, and one of the most responsive compliance teams in the country. If you expect people who answer the phone and know your name, responsive service, streamlined transition, and practice development all with a better payout it s time to grow with SSN. STATS AVERAGE PAYOUT: $206,064 NUMBER OF REPS: 472 CLEARING FIRM: National Financial & Pershing E & O COVERAGE: $2, YEAR FOUNDED: 1983 CEO/PRESIDENT: Wade S. Wilkinson RECRUITING Michael Neubeck EXECUTIVE: CONTACT Michael Neubeck 9729 Cogdill Road, Suite 301 Knoxville, TN Fax: Securian Financial Services 400 Robert St. N St. Paul, MN Phone: URL: securian.com Year founded: 1984 CEO: Bob Senkler Securities America Port Grace Blvd La Vista, NE Phone: URL: Year founded: 1984 CEO: Jim Nagengast Securities Service Network 9729 Cogdill Rd, Suite 301 Knoxville, TN Phone: URL: Year founded: 1983 CEO: Wade Wilkinson With a commitment to personal service, Sigma Financial Corporation partners with financial advisors looking to grow their practices in a professional and ethical manner. We provide comprehensive financial planning tools, products and services which allow our representatives to help Middle American Investors achieve financial success. STATS AVERAGE PAYOUT: 80-90% NUMBER OF REPS: 650 CLEARING FIRM: National Financial Services, LLC E & O COVERAGE: $224/mo YEAR FOUNDED: 1983 CEO/PRESIDENT: Jerome Rydell RECRUITING Jennifer Bacarella EXECUTIVE: CONTACT 4261 Park Road, Ann Arbor, MI Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group 54

57 RESOURCE DIRECTORY Signator Investors 197 Clarendon Street, C-8 Boston, MA 2116 Phone: URL: CEO: Christopher Maryanopolis SII Investments 5555 Grande Market Drive Appleton, WI Phone: URL: Year founded: 1968 CEO: Todd Kinart Triad Advisors 5185 Peachtree Parkway, Suite 280 Nocross, GA Phone: URL: Year founded: 1998 CEO: Mark C. Mettelman Sterne Agee Financial Services 800 Shades Creek Parkway, Suite 575 Birmingham, AL Phone: URL: Year founded: 2002 CEO: Jay Carter Sterne Agee Financial Services, Inc., Member FINRA/SIPC is a part of a privately owned, self-clearing financial services company with over 100 years of tradition serving the needs of investment professionals and their clients. STATS NUMBER OF REPS: 273 AVERAGE PAYOUT: 90% CLEARING FIRM: Sterne, Agee & Leach, Inc. E&O COVERAGE: Yes YEAR FOUNDED: 1986 (parent company founded in 1901) CEO/PRESIDENT: Jay W. Carter RECRUITING Stephen O Neill EXECUTIVE: PARENT COMPANY: Sterne Agee Group, Inc. CONTACT 800 Shades Creek Parkway, Suite 575 Birmingham, AL Fax: Summit Brokerage Services 595 S. Federal Highway, Suite 500 Boca Raton, FL Phone: URL: Year founded: 1993 CEO: Marshall Leeds The Strategic Financial Alliance 2200 Century Parkway, Suite 500 Atlanta, GA Phone: URL: Year founded: 2003 CEO: Clive Slovin Transamerica Financial Advisors 570 Carillon Parkway Saint Petersburg, FL Phone: URL: tfa.transamerica.com Year founded: 1984 CEO: Sandy Brown Over the past 27 years The Investment Center has been fortunate to share in tremendous industry developments including the proliferation of fee based products, technological advances beyond our expectations and the ability to bring broad and in depth product selections to our advisors. No one can predict what the next 27 years will bring, but one thing is certain; we will continue to provide the best service in the industry. STATS AVERAGE PAYOUT: 90% NUMBER OF REPS: 300 CLEARING FIRM: Pershing E & O COVERAGE: $2, YEAR FOUNDED: 1986 CEO/PRESIDENT: Ralph J. DeVito RECRUITING Jim Zerweck EXECUTIVE: CONTACT Jim Zerweck 1420 US Highway 206 North Bedminster, NJ Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group

58 RESOURCE DIRECTORY United Planners Financial Services 7333 East Doubletree Ranch Road Suite 120 Scottsdale, AZ Phone: URL: Year founded: 1987 CEO: Thomas H. Oliver VSR Financial Services 8620 West 110th Street Overland Park, KS Phone: URL: joinvsr.com Year founded: 1985 CEO: Jon M. Stanfield & Maureen C. McAnarney WRP Investments 4407 Belmont Avenue Youngstown, OH Phone: URL: Year founded: 1976 CEO: Scott A. Williams An RIA and Broker-Dealer providing Partners and Associates an unfettered program to transact fee-based business. With the majority of our advisors engaged in fee based business, we are committed to supporting the freedom and flexibility of being independent with a broad choice of custodians, ultimately driving costs down so your clients benefit. STATS AVERAGE PAYOUT: 90% NUMBER OF REPS: 330 CLEARING FIRM: Pershing E & O COVERAGE: Yes YEAR FOUNDED: 1987 CEO/PRESIDENT: David Shindel RECRUITING Sheila Cuffari-Agasi EXECUTIVE: CONTACT Sheila Cuffari-Agasi 7333 E. Doubletree Ranch Rd., Suite 120, Scottsdale, AZ x240 Fax: Waddell & Reed Financial 6300 Lamar Avenue Overland Park, KS Phone: URL: Year founded: 1937 CEO: Henry John Herrmann Wells Fargo Advisors Financial Network 1 North Jefferson Avenue St Louis, MO Phone: URL: Year founded: 2001 CEO: Danny Ludeman Williams Financial Group 2711 North Haskell Avenue, Suite 2900 Dallas, TX Phone: URL: Year founded: 1988 CEO: Wilson Williams Woodbury Financial 500 Bielenberg Drive Woodbury, MN Phone: URL: Year founded: 1910 CEO: Patrick H. McEvoy Woodbury Financial Services is a relationship-based, independent broker-dealer that delivers ultimate choice. You choose how to join us, get paid, and run your business, allowing you to utilize our services and support to your advantage. Our entrepreneurial model allows you, not your broker-dealer, to benefit the most from your production. STATS AVERAGE PAYOUT: Up to 95% for Investment Products and 105% for Life Insurance NUMBER OF REPS: 1,100 CLEARING FIRM: Pershing, LLC and National Financial E & O COVERAGE: $116 to $176 per month YEAR FOUNDED: 1910 CEO/PRESIDENT: Patrick H. McEvoy RECRUITING Gary N. Bender EXECUTIVE: PARENT COMPANY: Advisor Group CONTACT Gary N. Bender, SVP Acquisition and Retention 500 Bielenberg Drive Woodbury, MN , ext Fax: Broker-Dealer Guide / SourceMedia Marketing Solutions Group 56

59 To our reps, Thanks! and right back at ya. SSN s reps have voted us as delivering the country s highest overall experience in REP. magazine s annual independent broker dealer survey. Find out why at JoinSSN.com (866) Securities Service Network Member FINRA/SIPC

60 Going independent can fuel GROWTH, but you shouldn t be all alone. Running a top practicetakes resources, technology, and a team of experts solely DEDICATED to serving you. Give your practice the personalized SUPPORT to grow. Learn more in our complimentary white paper. Visit Smart448.LPLnow.com. Independent RIA Financial Institutions Insurance Retirement Plans A Registered Investment Advisor, Member FINRA/SIPC