Since last April, Securities America has shed close to 100 financial advisors, and has been bought out by Ladenburg Thalmann Financial Services for $150 million.
So, will the remaining advisors remain loyal or jump ship?
Well, it appears that Securities America is making an effort to keep its advisor force on board, especially those with practices that are run on fee-based models.
Deals are being negotiated and some competitive retention bonuses are being offered to advisors based on production, profitability and business growth, a spokesman for the company has reported.*
Administrative fees charged to brokers have been dropped from a 20 basis point fee to 10. Whether or not these efforts to keep advisors on board remains to be seen.
Many of them are in a “holding pattern” looking to see how Ladenburg Thalmann’s investment banking and capital markets businesses will affect their work…independent advisors don’t want to be told what to sell.
I hear Securities America is hosting town hall-styled teleconferences to answer financial advisors’ questions, but I’m banking on more advisors looking for a new home.
*OnWallStreet, August 18, Donna Mitchell, “Securities America Sweetens Retention Packages Following Sale”