Nationwide Financial tells its advisers to find new Broker-Dealers

Nationwide Financial Network, the sales and marketing arm of Nationwide Mutual Insurance Co., is telling its independent financial advisers to find their own broker-dealers rather than continue to trade through its own brokerage arm, Nationwide Securities LLC. All of Nationwide's independent “personal-producing general agents,” who are financial advisers, will have to register with a new broker-dealer by April 30, according to an e-mail sent out to all of its PPGA reps last Thursday. Furthermore, agents who want to continue to sell Nationwide products will have to do so through a “non-affiliated channel,” rather than go through Nationwide itself, according to an adviser quoting the e-mail. The move is part of a larger effort by Nationwide to focus its distribution efforts on its proprietary sales force, according to the letter. Specifically, the firm wants to focus on “using the exclusive agency and allied insurance affiliated channels to cross-sell opportunities, to expand life insurance and other financial services to property and casualty clients,” according to the adviser quoting the e-mail, which was sent out by Tom Houle, national sales manager for Nationwide Financial Network. Jeff Whetzel, a company spokesman, confirmed the changes, but couldn't elaborate or say how many representatives are in the independent PPGA channel by press time, given that the office was closed for Martin Luther King's birthday. The advisers will continue to get support from Nationwide Financial's non-affiliated sales team, which include 30 regional life consultants and a home office internal ales team, Mr. Whetzel said in an e-mail.