B-Ds down: Total reps displaced surpasses 2,400

Feb 25, 2011 @ 3:41 pm

By InvestmentNews Staff

With the confirmation yesterday of the shuttering of yet another independent B-D, the total number of reps that have been displaced over the last year has increased to nearly 2,400, according to an InvestmentNews analysis.

The planned closure of Ensemble Financial Services Inc.'s broker-dealer operation, which officials said will take place shortly, is at least the thirteenth broker-dealer to go down since March 2010. The B-D housed 85 reps, some of whom are said to be in the process of moving to Invest Financial Corp., one of the broker-dealers owned by Jackson National Life Insurance Co.

Ensemble is not the only B-D to exit the business this month, with QA3 — one of the largest B-Ds to cease operations yet — closing its doors Feb. 11. A large number of QA3's 400 brokers have defected to former competitors, including FSC Securities Corp. and Securities Service Network Inc.

The two recent closings have increased by 25% the total number of reps that have been forced to find new B-Ds. The chart below details the 13 independent broker-dealers that have ceased operations since March 2010, as reported by InvestmentNews, and includes their total number of reps:       

Firm Story date (click to read full story) Estimated reps1
Provident Asset Management LLC Thursday, Mar. 18, 2010 50
Nationwide Securities LLC Thursday, Apr. 1, 2010 200
AFA Financial Group LLC Friday, Apr. 30, 2010 100
GunnAllen Financial Inc. Monday, June 14, 2010 400
Great American Advisors Inc. Monday, July 12, 2010 500
Okoboji Financial Services Inc. Friday, May 28, 2010 20
MICG Investment Management LLC Wednesday, May 12, 2010 40
Jesup & Lamont Monday, June 21, 2010 300
Cullum & Burks Securities Inc. Wednesday, June 16, 2010 100
Chicago Investment Group Monday, June 28, 2010 90
United Equity Securities LLC Thursday, Aug. 12, 2010 60
QA3 Financial Corp. Friday, Feb. 11, 2011 400
Ensemble Financial Services Inc.2 Thursday, Feb. 24, 2011 85
Brewer Financial Services LLC Monday, Nov. 1, 2010 87
  Total 2,432
1 As of story date. 2 Only B-D operations will be shuttered. RIA unit will remain open.


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