It's been a good year for publicly traded brokerage firms — but not all

Shares of LPL, Raymond James and Ameriprise are among those outperforming their benchmark, while Oppenheimer Holdings is down by double digits.
SEP 13, 2017

Wall Street's expectation of a pullback in securities regulation by the Trump administration and a delay or outright repeal of the Department of Labor's fiduciary rule has launched a rally this year in brokerage stocks — at least for most of them. LPL Financial Holdings, the nation's largest indepedent broker dealer, has seen its shares climb 34% this year, and shares of Raymond James Financial Inc. are up 12.5%. Ameriprise Financial Inc., which also has large insurance and asset management businesses, has seen its share price increase 24.2%, while shares of Morgan Stanley, an investment bank that derives 40% of its revenue from wealth management, have increased 9.2%. The Financial Select Sector SPDR Fund, a $24.4 billion ETF, was up 6.7% for the year through Wednesday morning. Underperformers among brokerage stocks include Ladenburg Thalmann Financial Services, whose shares are up 3.3% for the year, while Stifel Financial Corp.'s are down 4.2%. Neither, however, come close to the dismal performance of Oppeneheimer Holdings, whose shares are down 13.4% A spokeswoman for Oppenheimer, Jacqui Emerson, did not return a call to comment. The firm's history of compliance problems and fines continues to hurt its prospects, said Danny Sarch, an industry recruiter. In particular, he pointed to Oppenheimer's $20 million fine and settlement with the Securities and Exchange Commission in 2015 over penny stock trading as still tarnishing its reputation. The former head of its private client group later that year was barred by the SEC from acting as a supervisor due to penny stock sales. "Oppenheimer for years compromised its compliance standards and suffered accordingly," Mr. Sarch said. "More recently, the firm has tried to clean up its act. But it's still seen as a place for advisers who have no other choice and have to go there, as opposed to a place where advisers want to go." With 1,158 financial advisers, Oppenheimer has 94 offices in 24 states, according to its most recent quarterly report from July. The company reported a loss of 10 cents per share for the second quarter of this year.

Latest News

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.