Another indie broker-dealer is closing up shop

Another independent broker-dealer is shutting down — this time, so its parent company can refocus on its insurance business. Great American Advisors Inc.'s will exit the business officially on July 12, according to a statement from the company, a move that will affect 500 of its affiliated advisers. The broker-dealer's parent, Great American Financial Resources Inc., said the reps and client accounts would transfer to Lincoln Investment Planning Inc., subject to approval by regulators. Great American Advisors, which ranks as the 61st largest independent broker-dealer (based on revenue) according to InvestmentNews data, will no longer provide services to reps. The broker-dealer will continue its operations as a broker-dealer and registered investment adviser to service its retirement plan and variable annuities business. (See the full profile of Great American's financials here.) It's the third independent broker-dealer to close in as many months. In March, regulators shut down GunnAllen Financial Inc., with about 400 reps and advisers, when it failed to have the minimum net capital on hand to remain open. Last month, AFA Financial Group LLC, with about 100 advisers, closed its doors. AFA was weighed down by legal and insurance costs. At the time, AFA's president Morrie Reiff said that his discussions with industry lawyers and observers indicate that as many as 35 other broker-dealers could be facing a similar fate. Great American clears with Pershing LLC.