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..Table of
..Contents
Introduction
Clearing Arrangements
Additional Product Availability
Types of Broker Relationships Offered by
Forsyth
Payout Information
Office Location
Quotation Devices and Research Available
Money Managers Available to Forsyth
Brokers Forsyth's Philosophy and Corporate
Atmosphere
Support Staff Available
States Where Forsyth is Registered
Contacting Forsyth |
Highlights -
+ Good, Competitive Payouts with Benefits
+ Pleasant, Knowledgeable Back Office Staff
+ Wide Array of Product Availability
+ Strong Clearing Relationships - First Clearing & RBC Dain
+ Cutting Edge Technology for Quotes & Account Info
+ Operating in Three Areas - B/D, Insurance, & RIA
+ Fifty Million Dollars in Excess Account Coverage
+ + + For Info Call Hugh Murray @ 314.997.7488 + + +
Introduction -
Forsyth Securities is fully disclosed FINRA
broker dealer and is registered in 21 states representing about 70 percent of America's population. In addition, Forsyth is registered in Missouri, Indiana,
and Illinois as an insurance agency, and as a registered investment advisor (RIA) in Missouri and Indiana. (A complete list of state registrations is set out in a special section below.)
Because of its registrations and clearing relationships
Forsyth is able to do business in the following areas: stock, corporate bonds, government bonds, muni bonds, mutual funds, managed money, variable annuities,
regular life insurance, direct participation programs, etc. Both agency and principal transactions are executed. Forsyth has access to its clearing
firms' bond inventories.
Forsyth has been a member of the FINRA, MSRB, and SIPC since 1985.
Clearing Arrangements
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Forsyth clears its business through two large clearing organizations -- First Clearing Corp. a division of the Wacovia Bank, and RBC Dain, a division of the Royal Bank of Canada. These clearing relationships bring Forsyth a wide array of over 100 money managers, over $50 million
of bond inventories, over 200 mutual funds, both in house and independent equity research, investment banking, bond and stock trading, and first
class on-line computer support for registered representatives. Both clearing firms have super SIPC coverage for Forsyth's customer accounts.
Additional
Product
Availability -
In addition to the very broad array of products offered through its clearing relationships, Forsyth offers direct purchase of mutual funds, variable annuities, fixed annuities, life insurance, and direct
participation investments. Some of Forsyth's relationships in each category follow:
Mutual Funds: Franklin - Templeton, American Funds, AIM, Putnam,
Oppenheimer, Scudder, Seligman, Sparrow, Lord Abbott, MFS,
Federated, VanKampen,
Alliance, John Hancock, Alger, Liberty - Colonial, Bear Sterns,
Mainstay, Nuveen, Delaware,
State Street, etc.
Variable Annuity: Pacific Life, Union Central Life, Phoenix
Life, American Skandia, Security
Benefit, ING Life, American Legacy, Hartford/Putnam, Met Life, etc.
Fixed Annuity and Life Insurance: Jackson National Life, Phoenix
Life, Standard Life of Indiana, etc.
Direct Participation Programs: Boston Capital, Commonwealth
Income and
Growth, WNC, etc.
Forsyth will sign up with other product providers if a broker has an interest in selling those products.
Types of Registration
Relationships
Available -
Forsyth offers three types of relationships for brokers: (1)
Full time employment, (2) Part time employment, and (3) Outside Contractor Status.
Full time employees are eligible for the company's Cafeteria
Plan, Health Insurance, and Dental Insurance as well as the SAR SEP
retirement program. Full time employees are provided with a desk,
telephone, and arm length's access to IL quotes at the company's
office. Full time employees receive the "employee payout" as set out in
the example in the Payout Calculation section below.
Part time employees are eligible for the SAR SEP retirement plan
only and are provided with a desk, telephone and access to quotes
at the company's office. Part time employees receive the "employee
payout" as set out in the example in the Payout Calculation section
below.
Outside contractors are not eligible for any benefits programs
and are not provided with a desk or telephone at the company's
office. Outside contractor brokers are also know as 1099 brokers.
Examples of how these outside contractor (1099) brokers are paid is shown in the Payout Calculation section below.
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Payouts -
Payout Information -
Forsyth divides business into "cleared/transactional" business
and "packaged product" business. In the first category are trades in listed stock, OTC stock, options, corporate bonds,
municipal bonds, etc. In the second category are mutual funds, variable annuities, direct participation units,
money manager fees, etc.
On all business payouts are figured on the dollars that actually
come to Forsyth. If there is a clearing fee charged by the clearing
firm on a trade, that clearing fee is deducted before the payout
is calculated. Forsyth refers to this as "gross less clearing".
Clearing fees vary on each trade but are generally in the $20 to
$25 range.
On "cleared/transactional" business, brokers who are either full
or part time employees get 55% of the gross less clearing amount.
Brokers who are outside contractors, paid on a 1099 tax advice, get
72% of gross less clearing.
On "package product" business, brokers who are either full or
part time employees get 65% of the gross less clearing amount.
Brokers who are outside contractors, paid on a 1099 advice, get 82%
of gross less clearing. Mostly there is no clearing fee on package
product trades, but occasionally when a mutual fund trade is done
through a clearing firm there is a small clearing fee.
Monthly Adjustments to Payout
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Some monthly adjustments to payout increase the broker's pay and
others reduce pay.
Adjustments that increase pay are ticket bonuses and payouts on mutual fund trails, money market fund trails, Forsyth's share of margin interest, etc. The
ticket bonus is calculated on each ticket with more than $40 of
gross less clearing. The ticket bonus starts at 2.5% of gross less
clearing and rises to 10% on trades with $10,000 or more of gross
less clearing. Very small producers are not entitled to a ticket
bonus payment. Mutual fund, money market fund, and variable annuity
trails that come in during the month earn a high payout percent of
either 65% or 82%. In like fashion margin interest participation
payments are given the same high payout percentage of 65% or
82%.
Adjustment that decrease payout are divided into fixed and
variable expenses. Some typical fixed expenses are for E&O
insurance, annual registration expense, bonding expense, and for
any special devices or computers required by the broker. Generally
special items required by the broker are split 50% charged to the
broker and 50% charged to Forsyth. Variable expenses charged to the
broker are postage, overnight delivery, client entertainment,
subscriptions, special support staff, client gifts, etc. All
business expenses are deducted from pay pretax.
Examples of Monthly Payout
Calculations -
For a sample calculation for an employee broker. click here
For a sample calculation for an 1099 broker click here. |
Office Location -
Forsyth is located on the third floor of the American
Optometric Association building at 243 N. Lindbergh Blvd. This building is half a block north of
where Ladue Road meets Lindbergh Blvd. The building is immediately
across from the MICDS football field entrance. Open bull pen
seating and private office seating are both available for employee
brokers and for 1099 brokers when they stop by the office.
NOTE: The top floor suite closest to the flag in this picture
is leased by Forsyth.
Quotation Devices and Research
Available -
Forsyth has both ILX and QUODD terminals in place. These machines have quotes,
back office access, clearing firm bond inventories, charts,
portfolio monitors, Dow Jones 90 day news recall, options montage,
DJ Professional Investor displays, etc. Forsyth's clearing firms
make research available via the internet such as Credit Suisse
First Boston, S&P tear sheets, etc. These reports can be printed
out on demand.
Hard copy subscriptions available include S&P Stock and Bond
Guides, S&P Outlook, Dick Davis, Value Line, Wall Street Journal,
Investors Business Daily, Barrons, Morningstar Mutual Fund,
etc.
Money Managers Available to
Forsyth's Brokers -
Both First Clearing and RBC Dain have dozens of money managers
available for Forsyth to utilize. These money managers include
large, mid, and small cap growth and value equity managers. They
also have many muni, corporate, and foreign fixed income managers.
The fees which the money managers and the clearing firm's charge
vary widely depending upon (1) the amount of money being managed
and (2) type of securities being managed. The clearing firm's
provide special performance reports to the clients and Forsyth on
these accounts.
Fosyth's Philosophy and
Corporate Atmosphere -
There are two attributes that best characterize Forsyth's
approach to the brokerage business First, the customer is entitled to
considerate, low pressure support and education about his portfolio
and possible future needs with particular sensitivity to his current worries and long term concerns. Second, this means Forsyth brokers are not required to sell certain products or to
meet production quotas. Obviously a broker can not hold
uppermost the needs of his clients while worrying about quotas or
the sale of particular products. The implementation of this
philosophy means that Forsyth's office environment is low keyed,
mutually helpful, respectful of clients, and interested in
acquiring product knowledge.
Support Staff -
Forsyth has three people available everyday to perform support
functions for the 35 plus brokers registered with the company: (1)
the back office manager has nearly twenty years of experience in
the broker industry and is available to help with any and all
problems, (2) the sales assistant function is filled by a flexible,
experienced person who can do a wide array of tasks from getting
out mailings, to fixing computers, greeting clients, organizing
forms, etc. and (3) the compliance/product manager is there for any
problems in these areas. In addition to this in house support, a
virtual army of support staff is supplied to Forsyth's brokers by
the two clearing firms.
States Where Forsyth is
Registered - As of Dec. 2007, Forsyth was licensed to
do brokerage business in the following states: CA, AZ, WA, NM, TX,
CO, KS, OK, IA, IL, MO, MN, WI, MI, OH, IN, MD, MA, GA, FL, NJ, NH, TN, and
NY. Forsyth is registered as a life insurance agency in the states
of Indiana, Illinois, and Missouri. Forsyth is a Registered Investment
Advisor (RIA) in Missouri and under an SEC mandated reciprocity
regulations is able to do RIA business with a few clients in each
of the other 49 states.
Contact Forsyth -
The appropriate person to contact at Forsyth for additional
information is Hugh Murray, Forsyth's President, at (314) 997 7488. If you would prefer
to speak with Hugh in the evening or early morning, he can be
reached at (314) 962 2187 at those times. .... .... HUGH MURRAY If Hugh is
unavailable ask for Sue Higginbotham.
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