Although first-half revenue may be down at National Planning Holdings Inc., the independent broker-dealer network has been actively adding to its ranks of registered representatives.
Although first-half revenue may be down at National Planning Holdings Inc., the independent broker-dealer network has been actively adding to its ranks of registered representatives.
During the first half of the year Santa Monica, Calif.-based NPH generated $284 million in International Financial Reporting Standards revenue, down from $319 million a year earlier. IFRS net income fell to $2 million, from $5 million in the first half of 2008.
Even so, new recruits flocked to the network, increasing the number of registered reps to an all-time high of 3,535 at the end of June — a 16% spike from the 3,025 reps it boasted just a year earlier.
Much of the new blood has been coming from regional broker-dealers and wirehouses, as the company recruits experienced independent brokers, NPH’s chief executive Jim Livingston said in an interview today.
“We have picked up guys in the lower echelons of the wirehouses,” he said. “We know that a lot of wirehouses weren’t going to take reps who produce less than $500,000 in [gross dealer concessions], but we find guys who make $250,000 to $500,000 a year are in our sweet spot.”
Mr. Livingston also pointed out that the firm is expanding its fee-based advisory practice.
At a time when a number of insurance companies are looking to shed their broker-dealers, he noted that his new recruits are looking for a broker-dealer that is getting steady funding from a well-capitalized parent — regardless of whether that company is an insurer.
“No matter who the owner is, whether you have a stand-alone broker-dealer or a broker-dealer that’s owned by a bank, capital is tight everywhere,” Mr. Livingston said. “So, if I’m a rep looking at where I’m going, I want to make sure that [the broker-dealer] is well-capitalized and that the institution is investing in its business.”
