First Allied Securities

First Allied Securities Advanced Equities Plaza655 W. Broadway, 12th Floor; San Diego, CA 92101619.702.9600www.firstallied.com /www.joinfasi.com Number of Back-Office Employees: 225 Number of Advisors: 987 Total Client Assets Under Management: $23 billion Advisors' Average Length of Service (in industry): 16 years Total Revenue Year to Date: $232 million Revenue from Commissions: $149 million Revenue

First Allied Securities

Advanced Equities Plaza
655 W. Broadway, 12th Floor; San Diego, CA 92101
619.702.9600
www.firstallied.com /www.joinfasi.com

Number of Back-Office Employees: 225

Number of Advisors: 987

Total Client Assets Under Management: $23 billion

Advisors' Average Length of Service (in industry): 16 years

Total Revenue Year to Date: $232 million

Revenue from Commissions: $149 million

Revenue from Fees: $51 million

Average AUM per Rep: $42 million

Average Payout per Rep: 92%

Average Production per Rep: $337,000

Number of Dually Registered Reps: 268

Registered Rep.: Why would a wirehouse rep want to leave his firm to join yours?

Keith Gregg: We offer true independence, business ownership, and access to unique and differentiated products and services, such as private equity and The Advisor Bank.

RR: Other than your own, of course, which other independent broker/dealers are you impressed with and why?

KG: LPL and Commonwealth. LPL for its sheer size and ability to execute to a corporate mandate; Commonwealth for its advisors' perception of good service and firm intimacy.

RR: Least favorite compliance rule?

KG: I like them all.

RR: Are your affiliated advisors fee-based or mostly commission/transaction advisors?

KG: We are pretty evenly split.

RR: How many of your reps are dually registered? Is that number growing or not?

KG: About one-third are dually registered, and it is clearly trending up.

RR: The most expensive aspect of running your independent broker/dealer firm in 2007?

KG: Compliance and technology.

RR: Your recruiting goals through 2008 and beyond?

KG: $60 million in new revenue in 2008, $80 million in 2009 and $100 million in 2010.

RR: What are you thoughts on upfront bonuses?

KG: They are necessary for transition support.

RR: The ideal advisor is? (Three words or less.)

KG: Entrepreneurial, growth-oriented.

RR: Biggest challenge in 2008 for the independent channel and your firm?

KG: Constantly navigating compliance and market potholes.

RR: The best technology investment your firm has made?

KG: The development of our Business Owners Suite.

RR: Best advice you can give a wirehouse rep thinking about going independent?

KG: Think about what you want your business to look like, and leave your [wirehouse] practice behind. There is a difference between owning a business and having a practice. A business is in business to make money. A practice practices making money.

RR: What challenges will you face over the next five years?

KG: Maintaining the level of intimacy with our business owners through our continuing growth.

RR: If you could meet one business-related figure, dead or alive, who would it be, and what would you ask?

KG: Warren Buffett. I'm not so sure I'd ask anything as much as listen to his philosophy and viewpoint on our industry and capital markets.

RR: In 10 years, your firm will be?

KG: The preeminent partner to the best entrepreneurial independent financial advisors in the industry.

RR: A book every financial advisor should read?

KG: Bullish Thinking: The Advisor's Guide to Surviving and Thriving on Wall Street by Sydney LeBlanc, Alden Cass, Wiley Bros. 2008.

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