private placements
Workman Securities to close: Finds reps a new homePosted by RJ and Makay on Aug 09, 2011 |
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Workman Securities Corp., an Eden Prairie Minnesota broker-dealer, told its 100 reps and advisors last Wednesday that the firm would be closing in November. Then the company informed the brokers that they could move, as a group, to Allied Beacon Partners, Inc., a Richmond Virginia based firm. Brokers who agree to switch to Allied Beacon were promised a smooth transition, and the new firm would keep Workman’s payout schedule for two years, an anonymous rep said.
The Municipal Securities Rulemaking Board (MSRB) issued a warning Wednesday to financial advisors of state and local governments that certain bank loans and financings may qualify as private placements of municipal securities. This would subject them to federal securities laws and MSRB rules that apply to broker-dealers.
Nearly twice as many broker-dealers closed down in 2010 than had opened, a trend that is likely to get worse before it gets better, according to a report by the research firm The Compliance Department, Inc. From May 2010 to May 2011, 336 broker-dealers alerted the Financial Industry Regulatory Authority (FINRA) that they were shuttering their businesses. 190 new firms were admitted by FINRA during that same time period.
