MutualFundWire.com: A 4,000-FA B-D Network Brings Due Diligence Under a Single Chief

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Thursday, January 4, 2018

A 4,000-FA B-D Network Brings Due Diligence Under a Single Chief

An independent broker-dealer network with more than 4,000 financial advisors is for the first time consolidating its due diligence into one team, led by a new hire who previously held a similar position at another indie B-D network.

Davis Thayer Gallison
Ladenburg Thalmann Financial Services, Inc.
Vice President - Due Diligence Officer

Atlanta-based Thayer Gallison joined Miami-based, publicly traded Ladenburg Thalmann in December as vice president and the network's first ever head of due diligence, Craig Timm confirms. Gallison reports to Timm, Ladenburg's chief risk officer, and now leads a team of three other due diligence specialists brought together from Ladenburg's subsidiaries. Watch for Gallison to expand his team as they build out Ladenburg's brand new, enterprise-wide due diligence platform.

Craig Alan Timm
Ladenburg Thalmann Financial Services, Inc.
Chief Risk Officer

"We're really actively considering and looking at the size and scope of what the enterprise needs," Timm tells MFWire. "We will continue to evaluate new positions, absolutely."

Gallison most recently spent six and a half years at another big independent B-D network, Advisor Group, where he served as vice president of investment research and product due diligence.

"Thayer was a valued member of our due diligence team, overseeing investment and product research. His contributions are much appreciated, and we wish him the very best in his future endeavors," an Advisor Group spokeswoman tells MFWire in an emailed statement. "Currently, we are in the process of selecting a new candidate to fill the role."

Gallison's new Ladenburg team brings together all of the full-time due diligence specialists who previously worked within Ladenburg's five subsidiary B-Ds: Miami-based Investacorp, Seattle-based KMS Financial Services, Omaha-based Securities America, Knoxville-based Securities Service Network, and Norcross, Georgia-based Triad Advisors. The B-Ds' employees who worked on due diligence only part-time will refocus on their other duties at those B-Ds.

"There won't be any elimination of personnel or positions," Timm says at the creation of Gallison's team. "That is a transition of all our full-time due diligence staff ... They will still, as a collective, continue to serve all of those firms."

Yet, despite the due diligence consolidation, Ladenburg's five B-Ds will each continue to have their own separate product menus available to their FAs and clients, Timm says.

"Each of our firms have their own due diligence platforms in place ... We do believe that there will continue to be some differences in the product platforms," Timm says. "This new due diligence platform is augmenting really the existing capabilities of our independent advisory and brokerage firms ... We really see this as a continued opportunity at Ladenburg for us to reiterate our strength in the network model."

Hiring Gallison and consolidating due diligence is "a key step" for Ladenburg and its B-Ds, Timm says. The central due diligence team "will effectively cover all of the major product categories," Timm adds, including mutual funds and ETFs.

"This move reinforces the autonomy of our subsidiaries by enabling them to direct newly liberated resources to areas of the business where they believe their firms can offer the most distinctive strategic advantages to the financial advisors they serve," states Richard Lampen, president and CEO of Ladenburg.

Adam Malamed, executive vice president and chief operating officer of Ladenburg, puts the hiring of Gallison and the creation of his team in the context of the industry enjoying "a greater level of regulatory clarity ... in this newe environment."

Timm praises Gallison as "top talent" for the job.

"He has a great reputation in the industry in the product and due diligence space," Timm says. "Competition for talent like Thayer is only going to increase."

"We saw this as a great fit," Timm adds. "We're just truly excited to have him join the firm."

Gallison, who is now based in Triad's offices in Norcross, is an alumnus of Emory. He worked at GV Financial Advisors and MV Capital Management before joining Advisor Group in 2011 and then moving to Ladenburg last month.

Printed from: MFWire.com/story.asp?s=57477

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