Shareholders cried “foul” against Morgan Stanley’s chairman and CEO for using 62% of the company’s net revenue for employee compensation. (After accepting a Treasury bailout).

The complaint demanded repayment and also that Morgan Stanley reform its pay practices. The lawsuit also wants repayment of incentive payments made in 2006 and 2007 “because they were based on financial results that were later proven to have been worthless”.

The suit was filed by the Security Police and Fire Professionals of America Retirement Fund and Central Laborers’ Pension Fund. No comment on the complaint from Morgan Stanley. (My comment…”grow”the pension funds, but keep the risk element out of it! Hmmm…if only it worked that way for us all!)  Read more...

An interesting survey by Jefferson National cited that about 50% of 750 fee-based advisors interviewed said they are turning to a “tactical management” strategy, while 68% are feeling pressure to revise their asset management strategy from the traditional “buy-and-hold” strategy. Only 34% said their clients are more confident with the traditional buy-and-hold.

So, how’s it work and why in a volatile market climate?

The feeling is that the markets will continue to show volatility until a solid market recovery is more evident and the tactical strategy is designed to allow rebalancing the percent of assets held in various categories, therefore taking advantage of certain situations in the market as they occur.  Read more...

In a meeting with their advisory group on February 2, 2010, TD Bank Financial Group told financial advisors that their role would no longer exist, according to spokesperson Susan Webb as reported to Pamela Black of OnWallStreet on February 3.

However, these “ousted” advisors could apply for a position at TD Ameritrade or TD Bank’s wealth management division for high net worth clients who have over $750,000 in investible assets.

So the question on the street is: “Is this another example of ‘big bank culture’ that doesn’t care about employees or clients who bought full service and were paying for it?”  Read more...

Sound impossible? Not really.

Considering the markets ending up 20% in 2009, one might expect gross production to reflect the same. Not so, according to Carri DegEnhardt-Burke of Degenhardt Consulting in Jersey City who found that just one in 10 brokers enjoyed significant growth in 2009.

So, of those top-line growth oriented advisors, what’s the common theme to “getting it right?”

You might be surprised, but the dynamic branch manager is key! With the downsizing of manager positions, so emerges the “complex manager” and his survival depends on how well he can act as a great coach, mentor, leader, motivator, trainer and advocate.  Read more...