NEW YORK — Recent changes in management at independent-contractor broker-dealer National Planning Corp. and National Planning Holdings Inc., its broker-dealer network, have some of its affiliated advisers concerned, while others accept the changes as part of the business.
NEW YORK — Recent changes in management at independent-contractor broker-dealer National Planning Corp. and National Planning Holdings Inc., its broker-dealer network, have some of its affiliated advisers concerned, while others accept the changes as part of the business.
Last month, M. Shawn Dreffein, former president and chief executive of NPC and chief executive of NPH, said she was retiring.
Scott Romine replaced her at NPC, and James Livingston took over her role at the broker-dealer network. Neither has experience running retail firms.
NPC and NPH are both based in Santa Monica, Calif.
Reaction to Ms. Dreffein’s departure was mixed.
“It’s obviously disappointing to see Shawn leave. Relationships are important,” said David Wood, president of Glastonbury, Conn.-based Gateway Financial Group Inc., which is affiliated with NPC.
“I’m not concerned at all,” said Bill Bowman, president of Financial Management Group Inc. of Chattanooga, Tenn., which also is affiliated with NPC. “I’ve felt very good about the conversations I’ve had” with Mr. Romine.
A key to Ms. Dreffein’s management style was building a culture that was both businesslike and familylike, Mr. Bowman said.
Tech investment
During her tenure, NPH, which is owned by Jackson National Life Insurance Co. of Lansing, Mich., came to prominence in the independent-contractor broker-dealer industry.
The network invested heavily in a technology platform for its representatives and advisers, and it also raised the ire of many of its competitors by offering some of the biggest recruitment packages for advisers in the industry.
The NPH broker-dealers offers recruits up to 42.5% of their fees and commissions from the previous 12 months to join. Most of that comes in the form of a forgivable loan.
The third-largest broker-dealer network owned by an insurance company, NPH last year reported $492.7 million in gross revenue. The other
broker-dealers in the network are INVEST Financial Corp. of Tampa, Fla., Investment Centers of America Inc. of Bismarck, N.D., and SII Investments Inc. of Appleton, Wis.
Last Tuesday, NPC gave further details about management changes.
Mr. Romine, president, will oversee the firm’s recruiting.
Kirsten Bosch was promoted to first vice president of branch development, from vice president, and Craig Lewis to vice president of marketing, from associate vice president of marketing.
Ms. Bosch takes over the new-business-development responsibilities formerly handled by NPC senior vice president Bonnie Schab, who also announced her retirement.
Mr. Livingston, the new head of the NPH network, acknowledged his lack of experience with a retail broker-dealer but said he is working intently to learn about the business.
Along with his new position at NPH, he retains his job as executive vice president of operations for Denver-based Jackson National Life Distributors LLC.
“There’s a long list of things I have to get up to speed on,” said Mr. Livingston, who will remain based in Denver.
He also said that NPH won’t change its focus, continuing to invest in its technology platform and also maintain its recruiting package.
NPH also will work to maintain the separate identities of its four broker-dealers, Mr. Livingston said, while it continues to develop common technology and compliance platforms.
“I don’t think there’s a big need to change things,” he said.
