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

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

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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 Michael.Schott@SourceMedia.com 3 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

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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 212-803-8567 NORTHEAST SALES MANAGER Robin Riley 212-803-8531 MIDATLANTIC SALES MANAGER Jim Shannon 434-202-8226 MIDWEST SALES MANAGER Vicki Hamilton 312-833-7613 WEST REGION SALES MANAGER Gena Haas 408-836-9590 CLASSIFIED ADVERTISING MANAGER Sheila Sullivan-Alyskewyz 212-803-8548 ADVERTISING SALES ASSISTANT Betty Lai 212-803-8586 REPRINT SALES DIRECTOR Godfrey Livermore 888-909-6366 MARKETING MANAGER Susan Zeqiri 212-803-8788 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

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 2001. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 6

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

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 2012. Broker-Dealer Guide / SourceMedia Marketing Solutions Group 8

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 866.462.3638 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 2013. Your experiences may vary. Visit jdpower.com.

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

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 800-934-6124 or explore the way we support RIAs at tdainstitutional.com/ourcommitment Follow Us @TDA4advisors 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. 2013 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

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

all ways open ARCHITECTURE

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

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 12-18 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 2012. 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

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

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

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

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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 2011. 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

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FP50 BIGGEST INDEPENDENT BROKER-DEALERS TOTAL REVENUES FP50 RANK TOTAL REVENUES COMMISSION REVENUE FEE REVENUE OTHER REVENUE 2013 2012 COMPANY $000s % CHANGE $000s % CHANGE $000s % CHANGE $000s % CHANGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1 LPL Financial 3,582,700 7.3 1,768,100 8.0 1,054,300 4.0 760,300 10.7 2 Ameriprise Financial 2,910,032 2.4 1,238,271 (4.8) 1,326,313 9.8 345,449 3.6 3 Raymond James Financial Services 1,208,127 4.0 587,696 (0.3) 443,791 8.9 176,640 6.8 4 Commonwealth Financial Network 712,057 10.1 252,771 22.2 374,188 11.2 85,098 7.8 5 AXA Advisors 624,600 9.1 508,600 7.6 97,000 11.1 19,000 50.8 7 Wells Fargo Advisors Financial Network 596,477 14.7 202,155 8.2 268,702 55.1 125,620 (21.4) 8 Northwestern Mutual 553,567 8.5 239,363 1.6 236,906 21.3 77,297 (2.4) 6 MetLife Securities 537,573 (0.9) 454,146 (3.3) 52,193 15.1 31,234 11.7 10 Cambridge Investment Research 461,424 13.5 185,699 17.0 230,681 10.5 45,044 15.3 9 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) 160,837 6.0 32,816 (17.3) 12 NFP Advisor Services Group (& Affiliates) 364,750 (1.2) 242,035 (4.1) 104,026 3.5 18,690 15.4 17 Waddell & Reed Financial 361,602 9.3 177,057 (3.7) 122,247 33.8 62,298 12.3 13 Cetera Advisor Networks 360,455 2.5 187,252 (1.6) 137,928 4.9 35,275 17.2 15 National Planning 346,769 3.2 232,075 (0.4) 87,798 15.2 26,895 0.8 16 ING Financial Partners 339,098 2.4 255,479 (0.1) 67,020 8.3 16,599 21.5 14 MML Investors Services 336,118 (3.2) 244,282 (6.8) 66,781 10.4 25,055 0.8 18 Securian Financial Services 291,234 3.1 219,992 0.9 55,245 9.7 15,997 13.5 19 FSC Securities 263,088 (0.3) 145,720 (3.0) 87,776 0.1 29,592 13.4 20 Signator Investors 263,012 2.9 226,522 1.7 31,567 10.0 4,924 19.3 22 H.D. Vest Investment Services 248,348 1.8 132,999 (2.5) 87,016 8.1 28,334 4.4 21 Woodbury Financial 243,328 (4.1) 210,391 (5.1) 29,813 6.6 3,123 (21.4) 25 Princor Financial Services 242,022 5.5 210,716 4.6 30,919 12.3 387 36.6 24 SagePoint Financial 236,923 0.6 145,601 (2.7) 64,810 12.1 26,513 (5.7) 26 Invest Financial 236,839 9.0 170,475 6.8 43,726 16.4 22,637 12.1 23 First Allied Securities 232,995 (3.3) 141,493 (3.1) 68,072 (3.7) 23,430 (3.8) 29 Transamerica Financial Advisors 232,612 49.7 180,119 44.2 52,493 72.5 n/a n/a 28 Cetera Advisors 210,024 27.4 117,553 22.3 72,442 32.2 20,029 44.1 27 Cetera Financial Institutions 192,217 11.4 146,582 9.0 10,586 20.0 35,049 20.1 30 SII Investments 166,035 9.8 112,045 8.8 40,780 13.6 13,210 7.7 31 Park Avenue Securities 152,913 9.0 111,603 8.2 36,833 12.5 4,477 1.0 32 Cadaret Grant 137,547 1.8 102,361 (0.7) 28,380 10.4 6,806 8.4 34 M Holdings Securities 131,939 6.8 120,392 5.0 9,011 32.6 2,536 20.3 35 American Portfolios Financial Services 131,938 7.3 91,495 4.3 38,825 14.9 1,618 8.2 36 Ameritas Investment 127,398 5.6 91,015 4.0 26,337 11.1 10,046 7.4 40 Triad Advisors 122,831 17.8 63,635 21.6 53,032 12.9 6,165 (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 115,157 5.4 93,351 3.9 15,080 (1.8) 6,724 65.0 44 CUSO Financial Services 114,106 15.4 94,039 n/a 7,322 n/a 12,745 n/a 38 ProEquities 110,104 4.4 82,190 5.8 18,201 0.8 9,712 0.2 45 Centaurus Financial 109,019 10.9 88,001 4.2 16,369 18.0 4,649 11.1 41 CFG/H. Beck 108,709 5.7 82,683 4.6 19,917 5.4 6,108 23.6 39 Cetera Financial Specialists 104,199 (0.1) 56,892 (0.1) 41,643 (0.5) 5,664 2.6 46 Securities Service Network 98,944 7.0 53,634 2.2 32,944 11.7 12,366 17.6 43 VSR Financial Services 98,136 (1.1) 55,812 (3.9) 36,680 2.9 5,644 1.8 48 Geneos Wealth Management 93,320 11.5 48,056 9.9 44,795 19.1 469 (80.1) 49 Investment Centers of America 87,462 5.0 63,787 2.0 15,611 17.1 8,064 8.1 42 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) 16,147 0.8 2,294 90.8 MEDIAN 234,917 4.72 145,720 1.65 52,343 10.49 16,298 8.08 Broker-Dealer Guide / SourceMedia Marketing Solutions Group 28

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PAYOUT GRIDS MUTUAL STOCKS BONDS ANNUITIES INSURANCE ALTERNATIVES REP MGD. FIRM MGD. OUTSIDE COMPANY FUNDS % % % % % % % % MGD. % Allstate Financial Services 45-81 60 60 45-81 45-81 n/a n/a n/a 81 American Portfolios Financial Services 90 90 90 90 90 90 90 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 50-90 50-90 50-90 50-90 50-90 50-90 50-90 50-90 50-90 AXA Advisors 50-80 50-80 50-80 50-80 50-80 50-80 50-80 50-80 50-80 Cadaret Grant 90 87 87 90 90 87 95 90 90 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 88 88 88 88 94 n/a n/a n/a n/a Cetera Advisors 90-92 80-82 80-82 90-95 93-95 n/a n/a n/a n/a Cetera Financial Institutions 80-92 80-90 80-90 80-95 80-95 not disc. not disc. not disc. not disc. Cetera Financial Specialists 50-90 50-90 50-90 50-90 50-90 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 90-92 70-90 90-92 90-92 90-92 90-92 90-92 90-92 90-92 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 90-95 80-85 80-85 90-95 90-95 90-95 90-95 90-95 90-95 Geneos Wealth Management 93 93 93 93 93 95 95 n/a 95 CFG/H. Beck up to 95 up to 85 up to 85 up to 95 100% 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 89-95 80-85 90-95 89-95 89-95 89-95 85-95 90-95 89-95 Investment Centers of America 75-92 75-85 75-85 75-92 75-92 75-92 75-92 n/a 75-92 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 90-98 76.5-91 76.5-91 90-98 90-98 90-98 90-98 n/a 90-98 M Holdings Securities 95 95 95 94 97 95 95 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 69 69 69 69 69 n/a n/a n/a 69 National Planning 90-95 80-85 90-95 90-95 90-95 90-95 90-95 90-95 90-95 National Securities n/a n/a n/a n/a n/a n/a n/a n/a n/a NEXT Financial Group 90 85 85 90 90 85 90 n/a 90 NFP Advisor Services Group (& Affiliates) 65-95 65-95 65-95 65-95 96 65-95 65-96 65-96 65-96 Northwestern Mutual 35-90 35-90 35-90 0.5-2.5 of deposits varies varies 35-90 35-90 35-90 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 45-85 45-85 45-85 varies n/a n/a 45-85 n/a 45-85 ProEquities n/a n/a n/a n/a n/a n/a n/a n/a n/a Raymond James Financial Services 96 96 96 96 91 96 100 96 96 Royal Alliance Associates 90-94 70-80 70-80 90-94 90-95 90-95 90-98 90-94 90-95 SagePoint Financial 90-93 80-83 80-83 90-93 90-95 90-93 90-98 90-95 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 92-95 92-95 92-95 92-95 100 92-95 92-95 n/a 92-95 Securities Service Network 94-98 98 98 94-100 94-100 85 98 98 94-98 Signator Investors 40-93 40-93 40-93 40-93 40-93 40-93 n/a n/a 40-93 SII Investments 90-95 90-95 90-95 90-95 90-95 90-95 90-95 90-95 90-95 Transamerica Financial Advisors n/a n/a n/a n/a n/a n/a n/a n/a n/a Triad Advisors 80-92 75-85 75-85 80-92 90-95 80-92 90-100 0 90-95 VSR Financial Services 80-92 80-88 80-88 80-92 80-92 80-92 80-97 80-97 80-97 Waddell & Reed Financial 50-82 45-57 45-57 50-82 50-82 45-57 50-82 50-82 50-82 Wells Fargo Advisors Financial Network 90 84 84 90 90 90 90 90 90 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

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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 0-500 No 0 0 0 American Portfolios Financial Services 1,800 No 25,000 1M-2M *See footnote 1 Ameriprise Financial 0 0 0 0 0 Ameritas Investment 0-3,000 No 5,000 3M 0-35 AXA Advisors 0 No 1,000 prop/2,500 non-prop 5M 0-24.50 Cadaret Grant 380 No 5,000 2M 15.65+ Cambridge Investment Research 0 No 7,500 3M negotiable Centaurus Financial 0 No 5,000 1.5M 20 Cetera Advisor Networks 0 0 0 0 0 Cetera Advisors 0 0 0 0 0 Cetera Financial Institutions 0 0 0 0 0 Cetera Financial Specialists 0 0 0 0 0 Commonwealth Financial Network 0 No 10,000 2M 0 CUNA Brokerage Services 0 0 0 0 0 CUSO Financial Services 0 No 15,000 2M 15 First Allied Securities 3,000 No 10,000 1M 9.95-35 FSC Securities 1,000 No 0 n/a 0-40 Geneos Wealth Management 0 No 25,000 5M 12-20 CFG/H. Beck 5,220 No 5,000 2M 9 mutual fund H.D. Vest Investment Services 0 No 5,000 0 0 ING Financial Partners 1,500 No 10,000 4M/claim, 30M annual range from 0 to 45 Invest Financial 3,600 3rd party 15,000 0 0-50 Investment Centers of America 0-3,000 3rd party 5,000 0 0-35 Investors Capital 1,245 No 10,000 0 0 LPL Financial 1,200-2,100 No 10,000 *See footnote 2 0-50 M Holdings Securities N/A No 10,000 8M 10 or 35 MetLife Securities 0 0 0 0 0 MML Investors Services 0 No 1,000 2M varies National Planning 4,020 3rd party 5,000 0 15-35 National Securities 0 No 0 0 0 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 0 0 0-40 SagePoint Financial 1,000 No 0 0 0-40 Securian Financial Services 0 0 0 0 0 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 5,000 0 15-30 Transamerica Financial Advisors 4,140 incl E&O No 10,000 3M 15+ Triad Advisors 0 No 0 0 0-25 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 0 0 0-37 FOOTNOTES: 1: 25+.01 - Listed, 25 - OTC, 35+ 1 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

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FP50 BIGGEST INDEPENDENT BROKER-DEALERS CLIENTS & ACCOUNTS FP50 ASSET BREAKOUT % QUALI- RANK TOTAL ACCOUNT ASSETS $50 $100K ACTIVE ACCOUNTS FIED 2013 2012 COMPANY $000s % CHANGE <$50K $99K $249K >$250K TOTAL % CHANGE ACCTS. 1 3 4 6 12 9 11 14 10 7 13 17 19 16 21 24 33 5 29 22 27 26 28 20 35 18 43 37 39 38 44 56 25 15 48 46 54 58 53 50 52 51 68 60 61 55 32 57 34 69 1 LPL Financial 373,300,000 13.6 3 Raymond James Financial Services 164,387,503 14.5 4 Commonwealth Financial Network 71,547,000 12.2 7 Wells Fargo Advisors Financial Network 63,356,000 20.5 12 NFP Advisor Services Group (& Affiliates) 49,978,340 (1.2) 10 Cambridge Investment Research 48,526,000 15.5 11 Royal Alliance Associates 45,501,600 6.7 13 Cetera Advisor Networks 44,689,354 9.2 9 Securities America 43,007,000 10.0 8 Northwestern Mutual 41,329,364 20.1 17 Waddell & Reed Financial 39,283,184 14.5 14 MML Investors Services 33,966,729 12.1 19 FSC Securities 31,895,200 8.4 16 ING Financial Partners 31,638,473 16.1 22 H.D. Vest Investment Services 30,135,898 8.9 24 SagePoint Financial 28,029,600 11.3 34 M Holdings Securities 28,025,732 16.0 5 AXA Advisors 25,125,000 13.7 27 Cetera Financial Institutions 24,780,615 7.4 21 Woodbury Financial 24,347,864 2.9 29 Transamerica Financial Advisors 23,557,993 20.9 23 First Allied Securities 23,522,015 8.9 28 Cetera Advisors 22,949,720 39.9 20 Signator Investors 21,489,560 4.7 36 Ameritas Investment 16,785,073 9.8 18 Securian Financial Services 14,695,683 16.6 39 Cetera Financial Specialists 14,466,510 5.9 33 NEXT Financial Group 14,331,886 0.1 44 CUSO Financial Services 14,239,396 20.2 37 CUNA Brokerage Services 13,421,201 4.3 46 Securities Service Network 12,471,456 4.3 54 KMS Financial Services 11,292,000 10.7 26 Invest Financial 11,126,887 9.5 15 National Planning 9,849,190 6.9 42 Allstate Financial Services 9,464,373 14.2 48 Geneos Wealth Management 9,100,000 7.9 52 Summit Brokerage Services 9,000,000 8.4 56 United Planners Financial Services 8,950,860 16.2 55 InvestaCorp 8,795,248 8.5 50 Investors Capital 8,500,000 6.3 59 Independent Financial Group 8,370,500 60.0 51 Sigma Financial 8,202,090 10.0 68 Crown Capital Securities 7,812,413 13.2 60 Berthel Fisher & Co. Financial Services 7,524,005 62.8 61 O.N. Equity Sales 7,171,474 13.4 53 Questar Capital 7,170,000 n/a 32 Cadaret Grant 6,622,512 12.5 58 Williams Financial Group 6,405,000 15.1 35 American Portfolios Financial Services 6,373,144 29.7 69 LaSalle St. Securities 6,349,140 5.0 4,300,000 4.9 63 1,260,476 4.5 40 749,300 2.5 59 n/a n/a 591,332 (8.0) n/a n/a 569,426 3.0 49 n/a n/a 611,188 3.2 60 317,942 4.3 56 483,792 (3.5) 913,328 (66.2) 421,752 0.5 101,700 4.8 n/a n/a 540,034 3.3 51 48,557 8.3 682,651 6.4 n/a n/a 501,545 (6.5) n/a n/a 216,418 0.8 57 n/a n/a n/a n/a 60 45,905 6.2 n/a n/a n/a n/a n/a n/a 301,013 n/a 50 380,522 7.8 33,470 7.9 71,500 2.5 128,901 9.4 52 83,849 7.8 25 301,661 8.2 53 76,900 6.0 n/a n/a 99,822 n/a n/a n/a 100,000 5.3 45 24,364 (11.4) 28 74,680 0.7 n/a n/a 59,000 110.7 30 n/a (100.0) n/a n/a 51,163 0.7 53 68,000 4.6 48,099 24.0 61 35,000 6.1 35 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

FP50 BIGGEST INDEPENDENT BROKER-DEALERS REPS & PRODUCTION FP50 % OF REPS PRODUCING RANK TOTAL PAYOUT AVERAGE PAYOUT $50K $100K $150K- $250K 2013 2012 COMPANY $000s % CHANGE $000s % CHANGE <$50K $99K $149K >$149K $499K >$500K 1 2 3 4 5 7 9 6 8 11 10 14 15 16 18 12 20 13 19 23 25 22 17 24 26 28 30 29 33 31 34 32 37 36 35 42 40 41 39 44 46 45 55 43 50 47 52 56 53 54 1 LPL Financial 2,461,400 6.8 185 2.9 2 Ameriprise Financial 1,832,955 1.5 246 2.2 3 Raymond James Financial Services 856,057 3.6 267 3.0 4 Commonwealth Financial Network 542,330 26.3 375 23.6 5 AXA Advisors 459,910 4.0 98 6.4 8 Northwestern Mutual 385,092 10.7 68 9.9 10 Cambridge Investment Research 377,519 13.6 196 0.5 7 Wells Fargo Advisors Financial Network 357,898 13.4 335 7.4 6 MetLife Securities 323,666 (2.5) 66 3.1 11 Royal Alliance Associates 321,240 (0.2) 189 0.9 9 Securities America 317,576 (9.8) 189 (19.0) 13 Cetera Advisor Networks 307,623 2.8 109 5.7 15 National Planning 292,204 3.3 211 5.0 16 ING Financial Partners 285,748 0.8 122 6.1 18 Securian Financial Services 250,690 2.7 238 9.2 12 NFP Advisor Services Group (& Affiliates) 247,322 (3.1) 192 1.4 20 Signator Investors 230,167 4.3 144 7.3 17 Waddell & Reed Financial 223,761 8.7 127 11.9 19 FSC Securities 204,974 (1.8) 193 3.8 25 Princor Financial Services 201,722 6.7 98 17.0 26 Invest Financial 192,760 9.0 162 5.9 21 Woodbury Financial 189,648 (9.7) 181 16.1 14 MML Investors Services 184,231 (5.2) 46 (1.8) 24 SagePoint Financial 182,955 2.0 111 3.7 23 First Allied Securities 180,005 (4.0) 276 (7.0) 28 Cetera Advisors 172,744 26.2 109 (6.3) 30 SII Investments 139,622 2.0 245 9.7 27 Cetera Financial Institutions 136,063 10.4 109 14.7 34 M Holdings Securities 125,657 6.7 254 39.7 31 Park Avenue Securities 120,333 10.4 54 7.7 35 American Portfolios Financial Services 118,744 7.3 168 4.7 32 Cadaret Grant 113,116 2.5 141 4.4 33 Next Financial Group 106,863 0.9 154 12.6 40 Triad Advisors 101,860 17.7 186 4.2 36 Ameritas Investment 100,300 6.7 79 9.8 41 CFG/H. Beck 90,439 5.7 122 12.9 38 ProEquities 88,671 4.6 87 (0.5) 45 Centaurus Financial 87,754 4.7 141 8.4 44 CUSO Financial Services 84,104 16.3 n/a n/a 46 Securities Service Network 83,868 7.3 206 11.3 48 Geneos Wealth Management 82,196 10.2 302 2.5 43 VSR Financial Services 79,331 (1.8) 305 2.0 53 Questar Capital 73,783 n/a 114 n/a 39 Cetera Financial Specialists 73,142 0.5 39 (11.6) 50 Investors Capital 65,566 (0.6) 144 5.1 49 Investment Centers of America 64,970 4.4 209 7.7 59 Independent Financial Group 62,845 17.4 135 7.1 54 KMS Financial Services 62,201 5.1 189 3.8 55 InvestaCorp 58,114 10.4 143 9.1 52 Summit Brokerage Services 58,000 7.4 181 5.7 Broker-Dealer Guide / SourceMedia Marketing Solutions Group 36

AVERAGE PRODUCTION 2012 2011 TOTAL % PRODUCING % REPS REPS SERIES 6 SERIES 7 OF TOP 20% QUOTA QUOTA REPS CHANGE REPS CHANGE ADDED DROPPED REPS REPS CFPS 634,955 125,000 125,000 13,336 3.8 13,336 3.8 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 946,115 250,000 250,000 4,773 0.5 3,212 0.6 589 510 91 4,635 742 945,100 200,000 200,000 1,729 0.3 1,445 2.2 n/a n/a n/a n/a 657 270,383 n/a n/a 5,242 (0.8) 4,673 (2.2) 990 1,055 846 4,184 432 229,360 n/a n/a 7,376 2.4 5,667 0.7 n/a n/a 3,242 2,017 714 637,545 n/a n/a 2,821 9.4 2,241 8.5 514 331 370 1,846 594 1,155,141 300,000 300,000 1,167 15.4 1,167 15.4 160 43 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 662,517 150,000 150,000 1,930 (0.9) 1,702 (1.0) 124 142 n/a n/a n/a 680,089 150,000 150,000 1,724 11.5 1,682 11.3 n/a n/a 146 1,536 476 n/a n/a 1,955 (6.7) 1,710 (11.4) n/a n/a n/a n/a n/a 660,000 250,000 250,000 1,460 (2.7) 1,388 (1.6) 220 260 414 1,040 n/a 342,699 n/a n/a 3,220 (2.0) 2,335 (5.0) 352 475 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 676,887 100,000 100,000 1,650 (3.1) 1,291 (4.4) 111 171 692 1,130 263 406,472 7,500 7,500 1,602 (2.9) 1,602 (2.9) 401 415 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 664,468 150,000 150,000 1,289 (2.8) 1,064 (5.4) 79 116 n/a n/a n/a 170,628 120,000 120,000 2,283 (7.8) 2,049 (8.8) 345 340 n/a n/a n/a 528,000 n/a n/a 1,402 (3.8) 1,188 0.0 251 307 642 1,131 166 430,000 50,000 50,000 1,150 (20.7) 1,050 (22.2) 83 371 764 708 n/a 198,000 n/a n/a 4,571 (9.7) 4,012 (3.5) 359 503 3,930 2,723 n/a 322,600 50,000 50,000 1,650 (2.0) 1,650 (1.6) 168 194 n/a n/a n/a 670,857 150,000 150,000 815 (6.4) 652 3.2 106 72 2 765 141 n/a n/a 1,209 32.7 1,076 30.6 324 72 n/a n/a n/a 732,000 250,000 250,000 605 (0.7) 571 0.5 67 71 131 461 72 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 852 5.8 536 7.2 144 97 404 453 68 n/a n/a 2,837 2.4 2,242 2.5 545 447 1,191 1,495 155 497,600 75,000 75,000 830 4.7 707 2.5 98 61 146 584 78 453,476 125,000 125,000 977 (1.0) 804 (1.8) 72 82 298 688 164 50,000 50,000 875 (5.0) 773 (7.0) 103 128 141 619 108 714,291 200,000 200,000 679 4.5 547 13.0 87 58 111 545 131 331,112 10,000 10,000 1,682 (1.7) 1,276 (2.7) 166 251 678 598 n/a 405,639 50,000 25,000 890 (4.1) 740 (6.3) 76 114 258 713 n/a 279,000 20,000 20,000 1,548 2.0 1,025 5.1 n/a n/a 660 863 n/a 484,290 50,000 50,000 702 (3.3) 622 (3.4) 90 114 280 442 225 648,000 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 40,000 472 (2.5) 407 (3.6) 74 86 92 430 130 938,271 200,000 200,000 297 7.6 272 7.5 19 28 19 251 97 922,836 200,000 200,000 383 (2.3) 260 (3.7) 15 21 22 261 87 293,000 25,000 25,000 646 5.4 646 5.4 159 125 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) 32 35 228 406 27 638,000 n/a n/a 350 (3.8) 311 (2.8) 60 74 40 321 79 503,000 125,000 100,000 500 5.3 465 9.4 87 47 89 399 78 583,077 48,000 45,000 405 2.5 329 1.2 34 24 75 330 108 75,000 75,000 495 10.0 405 1.3 n/a n/a n/a n/a n/a 725,000 150,000 150,000 375 4.2 320 1.6 20 15 28 347 54 37 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

FP50 BIGGEST INDEPENDENT BROKER-DEALERS COMMISSION PRODUCT REVENUE FP50 RANK COMMISSION REV. MUTUAL FUND REV. SECURITIES REV. STOCK REV. BOND REV. ETF REV. 2013 2012 COMPANY $000s % CHANGE $000s % CHANGE $000s % CHANGE $000s $000s $000s 1 2 3 5 8 16 4 17 12 7 15 20 18 23 22 6 10 11 14 9 27 13 25 29 19 24 26 21 33 28 30 31 32 39 38 34 35 41 37 42 40 48 50 47 36 55 43 45 54 44 1 LPL Financial 1,768,100 8.0 497,200 11.5 182,500 6.6 99,300 83,200 n/a 2 Ameriprise Financial 1,238,271 (4.8) 552,972 (6.8) 55,850 14.7 n/a n/a n/a 3 Raymond James Financial Services 587,696 (0.3) 279,253 3.1 96,714 (16.0) 74,789 21,925 n/a 5 AXA Advisors 508,600 7.6 55,500 0.0 5,000 (16.7) 3,800 1,200 n/a 6 MetLife Securities 454,146 (3.3) 34,630 (1.3) 3,092 (10.5) 2,199 446 448 16 ING Financial Partners 255,479 (0.1) 69,491 2.2 6,041 (22.4) 5,109 888 n/a 4 Commonwealth Financial Network 252,771 22.2 93,111 16.9 13,623 (7.2) 6,792 4,545 2,286 14 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) 37,880 2.5 4,213 (21.6) 1,345 1,440 1,057 8 Northwestern Mutual 239,363 1.6 120,143 0.1 n/a n/a 4,020 170 n/a 15 National Planning 232,075 (0.4) 56,513 (1.1) 4,936 (11.7) 3,180 1,068 689 20 Signator Investors 226,522 1.7 34,110 1.9 525 (15.1) 525 n/a n/a 18 Securian Financial Services 219,992 0.9 34,926 (6.3) 959 (19.2) n/a n/a n/a 25 Princor Financial Services 210,716 4.6 136,859 3.4 2,654 (5.5) 2,521 133 n/a 21 Woodbury Financial 210,391 (5.1) 37,900 6.7 1,939 (30.0) 1,914 25 n/a 7 Wells Fargo Advisors Financial Network 202,155 8.2 62,129 (1.4) 68,577 11.2 45,999 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 185,699 17.0 55,988 9.4 8,542 (20.9) 4,457 1,486 2,600 29 Transamerica Financial Advisors 180,119 44.2 42,473 8.9 2,690 (10.7) n/a n/a n/a 17 Waddell & Reed Financial 177,057 (3.7) 118,238 2.7 2,308 74.8 1,389 305 235 26 Invest Financial 170,475 6.8 43,686 11.7 8,975 (4.3) 6,040 2,274 661 27 Cetera Financial Institutions 146,582 9.0 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) 5,535 899 n/a 24 SagePoint Financial 145,601 (2.7) 50,208 (6.9) 6,720 (6.8) 6,242 478 n/a 23 First Allied Securities 141,493 (3.1) 27,230 3.6 31,002 (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 120,392 5.0 5,054 (0.1) 1,133 (16.1) 1,023 82 n/a 28 Cetera Advisors 117,553 22.3 n/a n/a n/a n/a n/a n/a n/a 30 SII Investments 112,045 8.8 23,749 7.9 2,459 2.1 1,663 494 301 31 Park Avenue Securities 111,603 8.2 22,796 1.0 1,902 (6.8) 1,781 121 n/a 32 Cadaret Grant 102,361 (0.7) 48,078 3.6 6,974 (15.8) 5,103 1,115 756 44 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 93,351 3.9 20,000 16.3 2,200 (82.5) 1,100 100 n/a 35 American Portfolios Financial Services 91,495 4.3 28,034 5.3 10,220 (3.7) 7,359 1,943 919 36 Ameritas Investment 91,015 4.0 22,149 (1.0) 7,003 2.1 1,603 5,400 n/a 45 Centaurus Financial 88,001 4.2 9,463 12.7 1,491 (5.4) 573 127 777 33 Next Financial Group 82,994 (6.5) 23,726 2.3 8,399 (20.5) 6,248 2,152 n/a 41 CFG/H. Beck 82,683 4.6 25,559 (2.7) 3,800 (7.6) 2,394 1,405 n/a 38 ProEquities 82,190 5.8 12,585 22.2 6,021 0.2 1,702 4,319 n/a 42 Allstate Financial Services 80,658 (16.8) 17,063 6.0 344 (18.5) n/a n/a n/a 50 Investors Capital 63,843 (0.5) 15,794 10.9 15,161 (10.5) 10,585 4,577 n/a 49 Investment Centers of America 63,787 2.0 19,132 5.7 4,368 (4.6) 2,818 1,280 270 40 Triad Advisors 63,635 21.6 9,752 (23.1) 6,858 29.0 4,777 1,200 n/a 53 Questar Capital 61,826 n/a 11,325 n/a 1,818 n/a 1,625 155 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) 5,783 9.4 4,337 1,330 116 52 Summit Brokerage Services 54,500 4.8 10,000 11.1 13,400 (3.6) 9,900 3,500 n/a 46 Securities Service Network 53,634 2.2 15,704 7.0 2,224 (43.9) 1,303 635 181 Broker-Dealer Guide / SourceMedia Marketing Solutions Group 38

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 914,200 4.1 815,400 98,800 30,000 1.0 1,300 28,600 144,200 28.2 n/a n/a n/a 358,274 (7.2) n/a n/a 113,726 2.8 n/a n/a 106,027 (1.5) n/a n/a n/a 172,014 4.5 155,748 16,267 12,513 (14.1) n/a n/a 2,730 14.3 n/a n/a n/a 356,000 12.0 356,000 n/a 81,100 (7.6) n/a 81,100 11,000 100.0 141 9,300 n/a 388,535 (3.8) 366,826 21,709 19,316 (13.7) n/a 19,316 8,573 87.0 n/a n/a n/a 134,887 (4.0) 130,840 4,047 33,188 10.9 47 33,141 10,720 30.2 n/a n/a n/a 97,161 1.0 94,698 2,462 17,787 0.8 3,219 14,567 17,551 (30.5) 4 14,851 2,696 124,682 1.5 119,741 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 1,027 101,190 (9.8) 374 100,816 8,112 (11.9) 369 9,792 720 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 18,347 18.8 n/a 13,107 324 80,358 1.6 79,765 593 109,565 1.8 7,038 102,527 n/a n/a n/a n/a n/a 65,871 9.7 59,356 156 118,236 (1.1) 14 118,221 n/a n/a n/a n/a n/a n/a (100.0) 51,606 n/a 19,597 12.3 n/a 19,597 n/a n/a n/a n/a n/a 124,559 (6.1) 123,976 583 36,948 (11.8) n/a 36,948 8,798 2.7 n/a n/a n/a 61,511 12.9 61,511 n/a 2,943 (5.4) n/a 2,943 4,732 3.1 116 n/a 1,848 47,400 (26.9) 45,700 1,700 2,300 (20.7) n/a n/a 11,800 49.4 n/a 9,440 n/a 93,605 (1.8) 89,646 500 4,238 (23.0) n/a n/a 12,080 34.4 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 84,586 18.7 66,016 371 6,314 (6.6) n/a 4,457 4,457 620.3 n/a 14,670 4,828 129,321 64.1 n/a n/a n/a n/a n/a n/a 5,635 36.5 n/a n/a n/a 43,713 (21.6) 42,101 1,612 12,797 6.6 n/a 12,797 n/a n/a n/a n/a n/a 95,560 3.8 77,330 12,280 2,560 (5.5) 182 2,306 19,693 20.8 8 9,235 262 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 72,265 0.5 67,759 506 4,181 (3.1) n/a n/a 12,745 15.6 n/a 12,745 n/a 71,664 (3.3) 65,751 852 5,213 (7.8) n/a n/a 8,063 38.2 n/a 7,028 n/a 56,102 (4.7) 54,493 1,610 6,945 (9.6) 272 6,670 4,237 39.2 129 15,036 812 53,617 (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) 7,218 164 100,793 8.3 n/a 100,365 114 54.9 107 7 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 69,178 4.4 64,364 3,124 2,334 (3.6) 81 2,251 14,326 44.6 n/a 9,402 580 85,402 11.8 85,402 n/a 1,504 (28.5) n/a n/a n/a n/a n/a n/a n/a 42,656 (2.0) 41,071 938 3,453 11.6 289 2,634 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 38,631 2.3 34,002 774 2,004 (15.1) 12 1,992 451 474.3 n/a 3,248 145 41,337 (1.6) 38,251 n/a 11,362 29.5 n/a n/a 7,307 87.7 n/a 7,307 n/a 50,136 (2.9) 39,728 10,408 5,145 2.2 223 4,923 17,117 25.5 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 3,059 1 38,513 6.9 36,174 237 1,827 (23.8) n/a 1,827 12,984 27.1 n/a n/a n/a 26,688 (4.5) 25,597 162 3,642 30.1 n/a 3,642 6,868 8.6 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 1,492 115 53.8 n/a n/a 4,663 2.2 n/a 2,867 n/a 26,536 (4.9) 21,399 3,788 5,823 29.1 429 5,216 7,928 6.7 n/a 5,349 139 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 22,100 330 332 n/a n/a n/a 3,521 n/a n/a 3,000 24 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 10,686 974 22,000 1.4 20,100 1,900 3,000 0.0 n/a 3,000 2,500 31.6 n/a 2,500 n/a 32,978 2.9 31,048 1,930 n/a n/a n/a n/a 2,728 53.4 n/a 2,728 n/a 39 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

FP50 BIGGEST INDEPENDENT BROKER-DEALERS FEE-BASED REVENUE FP50 % REPS RANK FEE REV. $000s FEE REV. FROM FEE REV. FEE-BASED AUM ON PLAT- 2013 2012 COMPANY $000s % CHANGE REPS FIRM OUTSIDE AS % $000s FORM 2 1 3 4 6 7 9 11 10 14 13 12 5 15 19 21 28 26 16 17 24 18 36 27 8 46 25 43 30 34 31 45 44 37 20 23 56 22 63 32 58 35 51 57 42 40 52 41 64 50 2 Ameriprise Financial 1,326,313 9.8 1,048,668 n/a 277,644 n/a n/a 100 1 LPL Financial 1,054,300 4.0 998,900 n/a 55,400 29.40 122,100,000 67 3 Raymond James Financial Services 443,791 8.9 297,751 103,203 45,567 43.30 59,990,161 90 4 Commonwealth Financial Network 374,188 11.2 320,325 23,459 30,405 n/a 33,400,000 92 7 Wells Fargo Advisors Financial Network 268,702 55.1 183,757 36,229 48,716 100.00 24,900,000 96 8 Northwestern Mutual 236,906 21.3 155,900 79,941 1,065 100.00 25,943,085 41 10 Cambridge Investment Research 230,681 10.5 161,476 20,761 48,443 55.00 25,400,000 90 11 Royal Alliance Associates 160,837 6.0 107,316 n/a 53,521 45.23 18,023,633 66 9 Securities America 158,500 (8.2) 73,000 n/a 80,900 44.00 14,561,563 91 13 Cetera Advisor Networks 137,928 4.9 n/a n/a n/a n/a n/a 51 17 Waddell & Reed Financial 122,247 33.8 12,124 103,716 n/a 100.00 10,135,411 88 12 NFP Advisor Services Group (& Affiliates) 104,026 3.5 48,165 5,701 39,534 29.00 10,766,628 70 5 AXA Advisors 97,000 11.1 n/a n/a 95,900 69.00 9,700,000 57 15 National Planning 87,798 15.2 34,489 n/a 53,309 25.00 9,483,997 70 19 FSC Securities 87,776 0.1 68,027 n/a 19,749 37.59 10,910,877 90 22 H.D. Vest Investment Services 87,016 8.1 82,210 n/a 4,805 n/a 6,757,276 n/a 28 Cetera Advisors 72,442 32.2 n/a n/a n/a n/a n/a 43 23 First Allied Securities 68,072 (3.7) 68,072 n/a n/a n/a 6,266,941 35 16 ING Financial Partners 67,020 8.3 56,157 n/a 10,863 20.00 5,179,510 62 14 MML Investors Services 66,781 10.4 n/a n/a 66,781 n/a 11,135,623 58 24 SagePoint Financial 64,810 12.1 42,193 n/a 22,616 30.80 6,775,439 59 18 Securian Financial Services 55,245 9.7 37,097 n/a 14,054 n/a n/a n/a 40 Triad Advisors 53,032 12.9 n/a n/a n/a n/a n/a 86 29 Transamerica Financial Advisors 52,493 72.5 n/a n/a n/a n/a 6,183,141 n/a 6 MetLife Securities 52,193 15.1 24,621 20,253 7,318 n/a 5,219,255 n/a 48 Geneos Wealth Management 44,795 19.1 19,711 n/a 25,084 56.00 4,500,000 99 26 Invest Financial 43,726 16.4 19,011 n/a 24,715 18.00 4,538,414 74 39 Cetera Financial Specialists 41,643 (0.5) n/a n/a n/a n/a n/a 60 30 SII Investments 40,780 13.6 14,695 n/a 26,085 25.00 4,326,505 73 35 American Portfolios Financial Services 38,825 14.9 26,692 n/a 12,133 31.00 3,480,945 70 31 Park Avenue Securities 36,833 12.5 5,070 5,698 26,064 n/a 4,565,468 65 43 VSR Financial Services 36,680 2.9 20,046 n/a 16,634 n/a 3,792,423 89 46 Securities Service Network 32,944 11.7 25,092 n/a 7,852 n/a 6,199,371 82 33 Next Financial Group 31,829 (0.7) 16,551 n/a 15,278 n/a 3,248,815 77 20 Signator Investors 31,567 10.0 n/a n/a 31,557 n/a n/a 37 25 Princor Financial Services 30,919 12.3 29,216 n/a 1,703 n/a 2,897,480 45 54 KMS Financial Services 30,578 13.4 20,249 n/a 7,917 n/a 3,439,495 90 21 Woodbury Financial 29,813 6.6 15,539 n/a 12,832 12.00 3,273,137 49 64 PlanMember Securities 29,419 11.1 770 24,249 4,400 59.20 2,600,000 100 32 Cadaret Grant 28,380 10.4 21,996 398 5,987 n/a 2,821,305 69 56 United Planners Financial Services 27,935 40.3 27,935 n/a n/a 40.00 3,598,252 90 36 Ameritas Investment 26,337 11.1 16,592 n/a 9,745 20.67 3,081,497 52 51 Sigma Financial 21,111 11.7 12,397 n/a 7,982 n/a 1,908,299 72 58 Williams Financial Group 20,200 18.1 13,200 n/a 7,000 n/a 1,655,000 75 41 CFG/H. Beck 19,917 5.4 19,917 n/a n/a 57.00 1,366,848 53 38 ProEquities 18,201 0.8 7,262 2,566 8,373 18.13 2,075,000 61 59 Independent Financial Group 17,853 18.6 12,202 n/a 10,659 29.00 2,286,107 34 45 Centaurus Financial 16,369 18.0 6,544 n/a 9,825 17.00 1,945,031 55 62 Investment Center 16,266 2.7 12,199 n/a 4,066 n/a 1,400,000 65 50 Investors Capital 16,147 0.8 11,223 1,324 1,810 20.00 1,500,000 75 Broker-Dealer Guide / SourceMedia Marketing Solutions Group 40

FP50 BIGGEST INDEPENDENT BROKER-DEALERS CORPORATE STAFF FP50 RANK FULL-TIME LICENSED REGISTERED OFFICE OF 2013 2012 COMPANY STAFF PROFESSIONALS OFFICES SUPERVISORY JUR. RECRUITERS COMPLIANCE 1 3 29 4 9 7 14 28 43 10 21 26 77 22 11 19 24 16 13 17 15 25 27 20 12 37 35 48 63 18 31 32 49 40 59 66 51 42 57 23 47 6 34 55 30 60 76 54 45 53 1 LPL Financial 2,687 907 6,456 4,013 317 3 Raymond James Financial Services 2,605 4,749 1,996 1,409 15 117 27 Cetera Financial Institutions 547 4 Commonwealth Financial Network 540 1,729 1,142 7 10 Cambridge Investment Research 497 179 1,408 335 26 52 8 Northwestern Mutual 461 616 887 102 93 13 Cetera Advisor Networks 448 28 Cetera Advisors 427 39 Cetera Financial Specialists 423 9 Securities America 378 201 1,724 256 11 67 22 H.D. Vest Investment Services 308 1 14 51 23 First Allied Securities 261 178 485 99 5 59 n/a Lincoln Investment 240 830 304 1 21 Woodbury Financial 215 833 21 21 37 11 Royal Alliance Associates 202 96 838 219 2 84 19 FSC Securities 202 91 734 219 2 85 24 SagePoint Financial 202 100 960 311 2 85 16 ING Financial Partners 201 3,220 1,837 2 35 17 Waddell & Reed Financial 199 14 MML Investors Services 193 4,571 1,304 93 6 15 National Planning 191 121 886 256 3 49 26 Invest Financial 183 101 1,595 111 4 40 29 Transamerica Financial Advisors 183 1 28 20 Signator Investors 180 1,638 338 38 38 38 12 NFP Advisor Services Group (& Affiliates) 175 128 627 16 3 42 33 Next Financial Group 146 54 597 155 5 29 36 Ameritas Investment 134 406 603 52 1 17 42 Allstate Financial Services 134 7,566 6,666 82 53 49 64 PlanMember Securities 127 387 294 5 4 5 18 Securian Financial Services 125 6 23 31 Park Avenue Securities 117 403 58 23 32 Cadaret Grant 110 36 500 247 1 11 47 National Securities 104 38 ProEquities 102 55 847 34 2 19 57 J.P. Turner 100 188 5 9 67 Sammons Securities 97 35 51 Sigma Financial 96 687 440 1 5 29 41 CFG/H. Beck 91 586 52 3 18 58 Williams Financial Group 88 49 119 23 2 9 25 Princor Financial Services 86 45 885 66 7 37 49 Investment Centers of America 85 86 532 8 2 15 7 Wells Fargo Advisors Financial Network 82 561 561 19 29 35 American Portfolios Financial Services 81 28 381 86 1 13 53 Questar Capital 80 517 80 10 26 30 SII Investments 79 65 386 109 3 16 60 Berthel Fisher & Co. Financial Services 77 30 264 10 2 8 76 Larson Financial Securities 77 53 13 1 2 3 52 Summit Brokerage Services 76 47 220 6 5 12 43 VSR Financial Services 74 47 211 1 4 55 InvestaCorp 72 31 298 1 3 7 41 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

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 80,107 6.3 53,369 5.1 21,111 11.7 5,627 (1.0) Independent Financial Group 76,014 21.7 50,848 19.5 17,853 18.6 7,313 49.8 InvestaCorp 74,459 11.6 53,447 8.5 15,503 19.0 5,508 24.7 Summit Brokerage Services 74,000 5.7 54,500 4.8 14,000 6.9 5,500 12.2 Questar Capital 73,216 4.7 61,826 n/a 8,390 n/a 3,000 n/a KMS Financial Services 70,523 4.6 38,595 (0.1) 30,578 13.4 1,449 (15.1) Williams Financial Group 70,100 11.8 44,150 15.5 20,200 18.1 5,750 (22.3) United Planners Financial Services 69,727 6.0 41,792 (8.9) 27,935 40.3 n/a n/a J.P. Turner 66,308 1.8 53,077 3.9 n/a n/a 13,232 (5.6) Berthel Fisher & Co. Financial Services 55,796 2.0 41,115 0.8 8,124 0.4 6,557 12.6 O.N. Equity Sales 54,283 9.7 49,594 6.7 2,439 (41.1) 2,249 n/a J.W. Cole Financial 51,552 10.0 41,777 8.9 9,775 15.0 n/a n/a PlanMember Securities 49,679 13.6 19,808 18.3 29,419 11.1 452 (15.2) Investment Center 47,003 (2.1) 30,596 (1.9) 16,266 2.7 946 (1.9) Kovack Securities 41,239 10.3 27,383 9.4 13,856 11.9 n/a n/a Sammons Securities 40,591 14.8 32,252 0.0 n/a n/a 8,338 166.3 Sterne Agee Financial Services 39,600 0.3 34,235 0.0 5,245 0.0 445 0.0 Crown Capital Securities 35,977 6.6 25,496 2.7 8,613 10.4 1,868 64.9 LaSalle St. Securities 32,174 1.1 27,268 1.5 4,649 (2.4) 257 30.7 Prospera Financial Services 31,905 3.7 22,498 3.7 8,278 3.7 1,128 3.7 Strategic Financial Alliance 30,371 15.4 14,473 15.2 12,740 12.7 3,158 28.7 Harbour Investments 30,309 9.1 25,079 7.3 5,230 18.9 11 n/a Capital Investment 26,543 15.3 22,003 17.5 4,001 3.7 539 21.6 Founders Financial Securities 16,943 21.6 7,533 (27.6) 8,783 149.1 n/a n/a Broker Dealer Financial Services 16,289 (6.5) 13,023 (5.9) 2,125 3.3 1,141 (25.5) Larson Financial Securities 11,400 60.6 11,400 60.6 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 112,510 17.5 343,676 50,000 465 9.4 500 62,845 135,000 7.1 503,000 125,000 405 1.3 495 58,114 143,491 9.1 n/a 75,000 320 1.6 375 58,000 181,250 5.7 725,000 150,000 646 5.4 646 73,783 114,215 n/a 293,000 25,000 329 1.2 405 62,201 189,061 3.8 583,077 48,000 235 (2.1) 262 50,000 212,766 (11.2) 760,000 200,000 319 (1.8) 319 53,441 167,527 7.8 533,750 75,000 383 (20.5) 447 52,384 n/a n/a 525,000 10,000 323 (2.7) 334 40,928 126,000 3.3 418,000 50,000 732 1.5 924 45,285 63,602 15.1 179,157 10,000 301 10.7 356 43,350 144,020 0.1 n/a 100,000 387 0.5 387 37,672 97,345 24.6 318,834 35,000 270 0.0 300 36,364 134,680 1.6 n/a 100,000 272 (5.2) 289 35,053 128,872 15.1 501,875 50,000 425 0.0 460 26,898 63,290 1.9 210,713 25,000 295 1.7 295 18,500 185,000 22.5 410,000 100,000 302 0.3 340 33,239 110,062 1.6 331,070 50,000 150 0.0 290 27,486 183,243 (0.0) 250,000 100,000 120 4.3 130 23,926 208,051 (5.3) n/a n/a 191 6.7 191 23,049 159,008 26.5 431,112 n/a 203 6.3 252 27,520 n/a n/a 410,000 60,000 198 2.6 198 21,204 107,089 10.9 824,445 75,000 60 (4.8) 60 n/a 296,534 37.4 466,520 50,000 223 (7.5) 275 11,030 49,462 3.3 191,941 25,000 31 40.9 57 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 830 21.0 830 n/a n/a n/a n/a n/a Broker-Dealer Guide / SourceMedia Marketing Solutions Group 42

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 1,131,739,629 866,895,000 837,105,000 597,289,835 399,942,902 % Change (1.5) 9.3 6.3 (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) 2,898 9.5 1,943 (5.1) Producing Reps % Change 5,466 (6.9) 5,599 (4.0) 3,458 (0.8) 2,634 10.0 1,793 (6.1) Total Payouts % Change 898,816,881 (2.3) 689,572,000 9.1 689,556,000 4.7 477,549,164 (2.8) 341,129,000 3.5 Average Rep Payout % Change 672,887 5.9 366,242 2.1 825,951 7.2 518,514 (4.6) 360,287 10.4 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) 508,279,000 6.4 578,382,000 3.6 316,182,339 (2.6) 302,675,207 1.9 Mutual Funds % Change 201,041,788 (8.6) n/a n/a 143,080,000 5.0 154,500,571 (7.4) 60,485,590 (4.8) Securities % Change 24,084,960 (10.2) n/a n/a 20,738,000 (5.5) 37,731,786 15.1 4,758,497 (10.2) Annuities % Change 362,093,176 (3.2) n/a n/a 341,318,000 0.9 69,081,512 (36.3) 104,384,527 8.7 Insurance % Change 50,580,302 (11.8) n/a n/a 12,952,000 4.0 2,300,000 (20.7) 120,063,058 (1.5) Alternatives % Change 41,685,264 21.1 n/a n/a 60,294,000 22.8 19,227,180 71.5 12,983,535 27.1 Total Fee Revenue % Change 343,235,322 5.6 262,599,000 10.8 187,915,000 15.3 227,034,502 (2.4) 75,162,386 8.5 43 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

FP50 BIGGEST INDEPENDENT BROKER-DEALERS TOP 10 LISTS REVENUE GROWTH FP50 TOTAL % RANK COMPANY REV. $000s GROWTH 27 28 36 39 6 9 46 29 41 4 Transamerica Financial Advisors 232,612 49.7 Cetera Advisors 210,024 27.4 Triad Advisors 122,831 17.8 CUSO Financial Services 114,106 15.4 Wells Fargo Advisors Financial Network 596,477 14.7 Cambridge Investment Research 461,424 13.5 Geneos Wealth Management 93,320 11.5 Cetera Financial Institutions 192,217 11.4 Centaurus Financial 109,019 10.9 Commonwealth Financial Network 712,057 10.1 PAYOUT GROWTH FP50 AVERAGE % RANK COMPANY PAYOUT $000s GROWTH 33 4 23 22 29 42 37 13 44 7 M Holdings Securities 254 39.7 Commonwealth Financial Network 375 23.6 Princor Financial Services 98 17.0 Woodbury Financial 181 16.1 Cetera Financial Institutions 109 14.7 CFG/H. Beck 122 12.9 Next Financial Group 154 12.6 Waddell & Reed Financial 127 11.9 Securities Service Network 206 11.3 Northwestern Mutual 68 9.9 HIGH-END REPS (TOP 20% OF REPS) FP50 AVERAGE % REPS RANK COMPANY APRODUCTION $ >$150K 6 54 4 3 45 26 46 39 47 30 Wells Fargo Advisors Financial Network 1,155,141 88 Summit Brokerage Services 725,000 88 Commonwealth Financial Network 945,100 76 Raymond James Financial Services 946,115 70 VSR Financial Services 922,836 69 First Allied Securities 670,857 64 Geneos Wealth Management 938,271 61 CUSO Financial Services 648,000 59 Investment Centers of America 638,000 53 SII Investments 732,000 46 HIGH-END ACCOUNTS FP50 TOTAL CLIENT % ACCTS. RANK COMPANY ASSETS $000s >$100K 69 3 44 15 32 10 7 34 4 25 LaSalle St. Securities 6,349,140 40 Raymond James Financial Services 164,387,503 33 Securities Service Network 12,471,456 33 National Planning 9,849,190 33 Cadaret Grant 6,622,512 32 Securities America 43,007,000 30 Northwestern Mutual 41,329,364 29 American Portfolios Financial Services 6,373,144 27 Commonwealth Financial Network 71,547,000 23 Invest Financial 11,126,887 22 FEE-BASED MIX FP50 FEE REVENUE % OF RANK COMPANY $000s BUSINESS 4 9 46 2 6 36 7 11 43 10 Commonwealth Financial Network 374,188 52.6 Cambridge Investment Research 230,681 50.0 Geneos Wealth Management 44,795 48.0 Ameriprise Financial 1,326,313 45.6 Wells Fargo Advisors Financial Network 268,702 45.0 Triad Advisors 53,032 43.2 Northwestern Mutual 236,906 42.8 Royal Alliance Associates 160,837 41.4 Cetera Financial Specialists 41,643 40.0 Securities America 158,500 39.6 NET CAPITAL FP50 NET CAPITAL NET EXCESS RANK COMPANY $000s CAPITAL $000s 1 22 13 5 12 4 48 9 21 29 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

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 email Financial Planning Editor-in-Chief Scott Wenger at FP50survey@sourcemedia.com. 45 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

RESOURCE DIRECTORY Allstate Financial Services 2920 S. 84th Street, Lincoln, NE 68506 Phone: 402-328-5763 URL: allstate.com Year founded: 1999 CEO: Robert Becker American Portfolios Financial Services 4250 Veterans Memorial Hwy. Suite 420E Holbrook, NY 11741 Phone: 631-439-4600 URL: www.americanportfolios.com Year founded: 2001 CEO: Lon T. Dolber Broker Dealer Financial Services 140 S. 68th Street, Suite 2200 West Des Moines, IA 50266 Phone: 800-352-5634 URL: www.bdfs.com Year founded: 1979 CEO: Timothy J. Lyle Ameriprise Financial Minneapolis, MN 55474 Phone: 612-671-3131 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: $2,880.00 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 92806 800-880-4234 Fax: 714-456-1799 www.centaurusfinancial.com Ameritas Investment 5900 O Street Lincoln, NE 68510 Phone: 800-335-9858 URL: aicinvest.com Year founded: 1983 CEO: Salene Marie Hitchcock-Gear AXA Advisors 1290 Ave of the Americas New York, NY 10104 Phone: 212-554-1234 URL: axa-equitable.com Year founded: 1999 CEO: Mark Pearson Berthel Fisher & Company Financial Services 701 Tama Street Marion, IA 52302 Phone: 319-447-5700 URL: www.berthel.com 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: $1,800.00 YEAR FOUNDED: 1990 CEO/PRESIDENT: Brent A. Owens RECRUITING Brent A. Owens EXECUTIVE: CONTACT Brent A. Owens, President 2704 South Goyer, Kokomo, IN 46902 1-800-745-7776 Fax: 765-864-4080 www.joincfd.com www.cfdinvestments.com Broker-Dealer Guide / SourceMedia Marketing Solutions Group 46

RESOURCE DIRECTORY Cadaret Grant One Lincoln Center, 5th Floor Syracuse, NY 13027 Phone: 315-471-2191 URL: www.cadaretgrant.com Year founded: 1985 CEO: Arthur Grant Cambridge Investment Research 1776 Pleasant Plain Rd. Fairfield, IA 52556 Phone: 800-777-6080 URL: www.joincambridge.com Year founded: 1981 CEO: Eric Schwartz Cetera Financial Specialists 200 N. Martingale Road Schaumburg, IL 60173 Phone: 877-744-2238 URL: www.ceterafinancialspecialists.com Year founded: 1981 CEO: Enrique M. Vasquez Capital Investment 17 Glenwood Ave. Raleigh, NC 27603 Phone: 919-831-2370 URL: www.cico.us 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 www.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 SM. 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 2013. Your experiences may vary. Visit www.jdpower.com. STATS AVERAGE PAYOUT: 91% NUMBER OF REPS: 1,445 CLEARING FIRM: National Financial Services E & O COVERAGE: $2,150.00 YEAR FOUNDED: 1979 CEO/PRESIDENT: Wayne Bloom RECRUITING Andrew Daniels EXECUTIVE: CONTACT The Commonwealth Field Development Team 29 Sawyer Road Waltham, Mass. 02453 866-462-3638 www.commonwealth.com Centaurus Financial 2300 East Katella Ave, Suite 200 Anaheim, CA 92806 Phone: 800-880-4234 URL: www.joincfi.com Year founded: 1992 CEO: Ron King Cetera Advisor Networks 200 North Sepulveda Blvd, Suite 1300 El Segundo, CA 90245 Phone: 800-879-8100 URL: www.cetera.com Year founded: 1983 CEO: Douglas King Cetera Advisors 4600 S. Syracuse St., Suite 600 Denver, CO 80237 URL: www.cetera.com Year founded: 1981 CEO: Brett L. Harrison Cetera Financial Institutions 400 1st Street South, Suite 300 St. Cloud, MN 56301 Phone: 800-247-0467 URL: www.ceterafinancialinstitutions.com 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: $330,000.00 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 21286 410-308-9988 x1234 Fax: 410-308-9801 www.foundersfinancial.com 47 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

RESOURCE DIRECTORY CFG/H. Beck 6600 Rockledge Drive, Sixth Floor Bethesda, MD 20817 Phone: 800-333-6884 URL: www.cfginc.com Year founded: 1984 CEO: Eric Meyers Commonwealth Financial Network 29 Sawyer Road Waltham, MA 2453 Phone: 800-237-0081 URL: www.commonwealth.com Year founded: 1979 CEO: Wayne Bloom Founders Financial Securities 1020 Cromwell Bridge Rd. Towson, MD 21286 Phone: 410-308-9988 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: $174.42 under the Corporate IRA and $205.83 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 30339 800-372-5646 Fax: 770-690-3719 www.joinfsc.com Crown Capital Securities 725 Town & Country Rd., Suite 530 Orange, CA 92868 Phone: 800-803-8886 URL: www.crowncapital securities.com Year founded: 1999 CEO: Darol Kenneth Paulsen CUNA Brokerage Services 2000 Heritage Way Waverly, IA 50677 Phone: 800-369-2862 URL: www.cunamutual.com CEO: Jim Metz CUSO Financial Services 10150 Meanley Drive, 1st Floor San Diego, CA 92131 Phone: 858-530-4400 URL: www.cusonet.com Year founded: 1996 CEO: Valorie Seyfert First Allied Securities 655 W. Broadway, 12th Floor San Diego, CA 92101 Phone: 619-702-9600 URL: www.joinfirstallied.com 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 21290 Mobile, AL 36602 888-397-7358 Fax: 888-206-5230 www.joinharbor.com Broker-Dealer Guide / SourceMedia Marketing Solutions Group 48

RESOURCE DIRECTORY FSC Securities 2300 Windy Ridge Parkway Atlanta, GA 30339 Phone: 800-547-2382 URL: www.joinfsc.com Year founded: 1958 CEO: Jerry Murphy Geneos Wealth Management 9055 E. Mineral Circle, Suite 200 Centennial, CO 80112 Phone: 888-812-5043 URL: www.geneoswealth.com Year founded: 2002 CEO: Russell R. Diachok Invest Financial 8745 Henderson Road, Suite 300 Tampa, FL 33634 Phone: 813-289-0722 URL: www.investfinancial.com Year founded: 1982 CEO: Steve Dowden H.D. Vest Investment Services 6333 North State Highway 161, 4th floor Irving, TX 75038 Phone: 972-870-6000 URL: www.hdvest.com 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 53719 Phone: 608-662-6100 URL: www.harbourinv.com 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 $300.00 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 33634 800-245-4732 Fax: 813-890-6412 www.investfinancial.com Independent Financial Group 12671 High Bluff Drive, Suite 200 San Diego, CA 92130 Phone: 800-269-1903 URL: www.ifgsd.com Year founded: 2003 CEO: Joe H. Miller ING Financial Partners 909 Locust St. Des Moines, IA 50309 Phone: 800-356-2906 URL: www.ingfinancialpartners.com 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 12671 High Bluff Drive, Suite 200 San Diego, CA 92130 800-269-1903 Fax: 858-481-9033 www.joinifgsd.com 49 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

RESOURCE DIRECTORY Investacorp 4400 Biscayne Blvd., 11th Floor Miami, FL 33137 Phone: 305-557-3000 URL: www.investacorp.com Year founded: 1978 CEO: Patrick Farrell Investment Center 1420 US Hwy 206 Bedminster, NJ 7921 Phone: 908-707-4422 URL: www.investmentctr.com Year founded: 1986 CEO: Ralph DeVito KMS Financial Services 2001 Sixth Avenue, Suite 2801 Seattle, WA 98121 Phone: 206-441-2885 URL: www.kms.com Year founded: 1971 CEO: Mark Hamby Investment Centers of America 212 North Fourth Street Bismarck, ND 58501 Phone: 800-544-7113 URL: www.joinica.com 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: 800-949-1422 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 al@jpturner.com One Buckhead Plaza 3060 Peachtree Rd NW, 11th Floor, Atlanta, GA 30305 800-793-2675 www.joinjpturner.com J.P. Turner One Buckhead Plaza 3060 Peachtree Rd NW, 11th Fl Atlanta, GA 30305 Phone: 404-479-8300 URL: www.jpturner.com Year founded: 1997 CEO: Tim McAfee & Bill Mello J.W. Cole Financial 6928 W. Linebaugh Ave. Tampa, FL 33625 Phone: 866-592-6531 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: $2975.00 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 77042 877-876-6398 x 4060 Fax: 713-333-2723 www.nextfinancial.com Broker-Dealer Guide / SourceMedia Marketing Solutions Group 50

RESOURCE DIRECTORY Kovack Securities 6451 North Federal Highway, Suite 1201 Ft. Lauderdale, FL 33308 Phone: 866-564-6574 URL: www.joinksi.com Year founded: 1997 CEO: Ronald J. Kovack Larson Financial Securities 1015 Corporate Square Dr., Suite 300 St Louis, MO 63132 Phone: 314-787-7436 URL: www.larsonfinancial.com Year founded: 2010 CEO: Paul Larson MetLife Securities 1095 Sixth Avenue New York, NY 10036 Phone: 888-883-4684 URL: metlifesecurities.com Year founded: 1983 CEO: Steven A. Kandarian LaSalle St. Securities 940 N Industrial Drive Elmhurst, IL 60126 Phone: 630-600-0500 URL: www.joinlasallest.com 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: $1,975.00 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 93013 1-800-874-6910 x2556 Fax: 1-800-614-8522 www.joinplanmember.com Lincoln Investment 218 Glenside Avenue Wyncote, PA 19095 Phone: 215-887-8111 URL: www.lincolninvestment.com Year founded: 1968 CEO: Ed Forst LPL Financial 75 State Street Boston, MA 2109 Phone: 888-250-2420 URL: www.joinlpl.com Year founded: 1968 CEO: Mark S Casady M Holdings Securities 1125 NW Couch St, Suite 900 Portland, OR 97209 Phone: 888-520-6784 URL: www.mfin.com 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: $2,700.00 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 75240 877-737-5429 Fax: 972-581-3001 www.joinprospera.com 51 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

RESOURCE DIRECTORY MML Investors Services 1295 State Street Springfield, MA 01111 Phone: 800-542-6767 URL: mmlinvestors.com Year founded: 1981 CEO: Michael R. Fanning National Planning 401 Wilshire Blvd., Suite 1100 Santa Monica, CA 90401 Phone: 800-881-7174 URL: www.natplan.com Year founded: 1998 CEO: Scott Romine O.N. Equity Sales One Financial Way Cincinnati, OH 45242 Phone: 513-794-6794 URL: www.joinonesco.com Year founded: 1968 National Securities 120 Broadway, 26th Floor New York, NY 10271 Phone: 212-417-8000 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 77042 Phone: 877-876-6398 URL: www.nextfinancial.com 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 55416 888-446-5872 www.questarcapital.com NFP Advisor Services Group (& Affiliates) 1250 Capital of Texas Highway Building 2, Suite 125 Austin, TX 78750 Phone: 512-697-6000 URL: www.nfp.com Year founded: 1966 CEO: James Poer Northwestern Mutual 720 E. Wisconsin Avenue Milwaukee, WI 53202 Phone: 800-323-7033 URL: www.northwesternmutual.com Year founded: 1968 CEO: John E. Schlifske STATS AVERAGE PAYOUT: 80-100% 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 33716 866-800-5708 www.advisorchoice.com Broker-Dealer Guide / SourceMedia Marketing Solutions Group 52

RESOURCE DIRECTORY Park Avenue Securities 7 Hanover Square New York, NY 10004 Phone: 212-919-3493 URL: www.parkavenuesecurities.com CEO: Jill Cooley PlanMember Securities 6187 Carpinteria Ave Carpinteria, CA 93013 Phone: 800-874-6910 URL: joinplanmember.com Year founded: 1982 CEO: Jon Ziehl Raymond James Financial Services 880 Carillon Parkway Saint Petersburg, FL 33716 Phone: 800-998-7537 URL: www.advisorchoice.com 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 50392 Phone: 888-774-6267 URL: www.princor.com Year founded: 1968 CEO: Ralph C. Eucher ProEquities 2801 Highway 280 South Birmingham, AL 35223 Phone: 800-288-3035 URL: www.proequities.com 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, $319.42 under the Corporate RIA and $350.84 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 10281 866-849-7673 Fax: 212-551-5380 www.royalalliance.com Prospera Financial Services 5429 LBJ Freeway Ste 400 Dallas, TX 75240 Phone: 972-581-3000 URL: joinprospera.com Year founded: 1983 CEO: David Stringer Questar Capital 5701 Golden Hills Drive Minneapolis, MN 55416 Phone: 888-446-5872 URL: www.questarcapital.com 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: $191.08 under the Corporate RIA and $222.50 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 85004 Toll Free: 866-462-4432 Fax: 602-567-6405 www.sagepointfinancial.com 53 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

RESOURCE DIRECTORY Royal Alliance Associates One World Financial Center, Floor 15 New York, NY 10281 Phone: 800-821-5100 URL: www.royalalliance.com Year founded: 1989 CEO: Art Tambaro SagePoint Financial 2800 North Central Avenue Phoenix, AZ 85004 Phone: 602-744-3000 URL: www.sagepointfinancial.com Year founded: 1970 CEO: Jeffrey Auld Sigma Financial 4261 Park Road Ann Arbor, MI 48103 Phone: 734-663-1611 URL: www.sigmafinancial.com Year founded: 1983 CEO: Jerome Rydell Sammons Securities 4261 Park Road Ann Arbor, MI 48103 Phone: 800-373-1612 URL: www.sammonssecurities.com 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: $2,400.00 YEAR FOUNDED: 1983 CEO/PRESIDENT: Wade S. Wilkinson RECRUITING Michael Neubeck EXECUTIVE: CONTACT Michael Neubeck 9729 Cogdill Road, Suite 301 Knoxville, TN 37932 866-218-7908 Fax: 865-777-4681 www.joinssn.com Securian Financial Services 400 Robert St. N St. Paul, MN 55101 Phone: 888-237-1838 URL: securian.com Year founded: 1984 CEO: Bob Senkler Securities America 12325 Port Grace Blvd La Vista, NE 68128 Phone: 800-747-6111 URL: www.joinsai.com Year founded: 1984 CEO: Jim Nagengast Securities Service Network 9729 Cogdill Rd, Suite 301 Knoxville, TN 37932 Phone: 866-218-7908 URL: www.joinssn.com 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 48103 888-744-6264 Fax: 734-663-0213 www.sigmafinancial.com Broker-Dealer Guide / SourceMedia Marketing Solutions Group 54

RESOURCE DIRECTORY Signator Investors 197 Clarendon Street, C-8 Boston, MA 2116 Phone: 617-572-1227 URL: www.johnhancockfinancialnetwork.com CEO: Christopher Maryanopolis SII Investments 5555 Grande Market Drive Appleton, WI 54913 Phone: 800-426-5975 URL: www.siionline.com Year founded: 1968 CEO: Todd Kinart Triad Advisors 5185 Peachtree Parkway, Suite 280 Nocross, GA 30092 Phone: 800-720-4003 URL: www.triad-advisors.com Year founded: 1998 CEO: Mark C. Mettelman Sterne Agee Financial Services 800 Shades Creek Parkway, Suite 575 Birmingham, AL 35209 Phone: 205-414-3349 URL: www.sterneagee.com 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 35209 205-414-3349 Fax: 205-414-3200 www.sterneagee.com Summit Brokerage Services 595 S. Federal Highway, Suite 500 Boca Raton, FL 33432 Phone: 800-354-5528 URL: www.joinsummit.com Year founded: 1993 CEO: Marshall Leeds The Strategic Financial Alliance 2200 Century Parkway, Suite 500 Atlanta, GA 30345 Phone: 678-954-4000 URL: www.thesfa.net Year founded: 2003 CEO: Clive Slovin Transamerica Financial Advisors 570 Carillon Parkway Saint Petersburg, FL 33716 Phone: 800-322-7161 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: $2,700.00 YEAR FOUNDED: 1986 CEO/PRESIDENT: Ralph J. DeVito RECRUITING Jim Zerweck EXECUTIVE: CONTACT Jim Zerweck 1420 US Highway 206 North Bedminster, NJ 07921 800-345-8041 Fax: 908-719-6486 www.investmentctr.com 55 Broker-Dealer Guide / SourceMedia Marketing Solutions Group

RESOURCE DIRECTORY United Planners Financial Services 7333 East Doubletree Ranch Road Suite 120 Scottsdale, AZ 85258 Phone: 480-991-0225 URL: www.unitedplanners.com Year founded: 1987 CEO: Thomas H. Oliver VSR Financial Services 8620 West 110th Street Overland Park, KS 66210 Phone: 913-498-2900 URL: joinvsr.com Year founded: 1985 CEO: Jon M. Stanfield & Maureen C. McAnarney WRP Investments 4407 Belmont Avenue Youngstown, OH 44505 Phone: 800-589-2023 URL: www.joinwrp.com 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 85258 800-966-8737 x240 Fax: 480-503-8183 www.unitedplanners.com Waddell & Reed Financial 6300 Lamar Avenue Overland Park, KS 66202 Phone: 913-236-2000 URL: www.waddell.com Year founded: 1937 CEO: Henry John Herrmann Wells Fargo Advisors Financial Network 1 North Jefferson Avenue St Louis, MO 63103 Phone: 866-485-5383 URL: www.wfafinet.com Year founded: 2001 CEO: Danny Ludeman Williams Financial Group 2711 North Haskell Avenue, Suite 2900 Dallas, TX 75204 Phone: 800-225-3650 URL: www.williams-financial.com Year founded: 1988 CEO: Wilson Williams Woodbury Financial 500 Bielenberg Drive Woodbury, MN 55125 Phone: 800-800-2638 URL: www.joinwoodbury.com 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 55125 800-800-2638, ext. 21800 Fax: 877-337-4766 www.joinwoodbury.com Broker-Dealer Guide / SourceMedia Marketing Solutions Group 56

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 www.joinssn.com (866) 218-7908 Securities Service Network Member FINRA/SIPC

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