Securities America Steve McWhorter CEO

Registered Rep.: Why would a wirehouse rep want to leave his firm and join yours? Stever McWhorter: For the resources to profitably grow your business while providing your clients with unbiased financial solutions and exceptional service. RR: Other than your own, of course, which other independent broker dealers are you impressed with and why? SM: Commonwealth because it has a similar culture to ours.

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

Stever McWhorter: For the resources to profitably grow your business while providing your clients with unbiased financial solutions and exceptional service.

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

SM: Commonwealth because it has a similar culture to ours.

RR: Least favorite compliance rule?

SM: The absence of safe harbor rules for suitability.

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

SM: 1,420 of our 1,700 registered representatives are also investment advisors; 74 percent are IARs under our corporate RIA and 26 percent have their own RIAs.

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

SM: Existing and prospective reps continue moving to a fee-based practice. We have surpassed $13.6 billion in fee-based assets.

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

SM: Maintaining and enhancing leading-edge compliance and supervision infrastructure.

RR: Your recruiting goals through 2008 and beyond?

SM: Attract 300 quality advisors annually using a combination of organic and acquisition strategies.

RR: What are your thoughts on upfront bonuses?

SM: Forgivable loans, upfront bonuses and transition assistances have become another means for b/ds to compete on price and payout.We believe that some transition assistance is understandable.

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

SM: Trustworthy, knowledgeable and growth-oriented.

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

SM: Balanced compliance and supervision that promotes high standards and client-centered conduct without unduly burdening our reps' growth potential, their clients or the firm.

RR: The best technology investment your firm has made?

SM: Account aggregation, consolidated performance reporting and straight-through processing with paperless office solutions.

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

SM: Do what's best for your clients. Hire a knowledgeable and experienced assistant, have a written business plan, and choose a b/d that will add value where you need it most.

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

SM: Leadership bench strength, continuing to attract high-quality reps who want to grow their businesses, balancing regulatory requirements with the ability to serve the investing public effectively.

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

SM: Declined to answer.

RR: In 10 years, your firm will be?

SM: The No. 1 independent b/d.

RR: A book every financial advisor should read?

SM: Any book that focuses on the importance of honesty and integrity in building trust in a relationship.

Securities America

12325 Port Grace Blvd
LaVista, NE 68128
(402) 399-9111
www.securitiesamerica.com

Number of Back-Office Employees: 453

Number of advisors: 1,750

Total Client Assets Under Management: N/A

Advisors' Average Length of Service (in industry): N/A

Total Revenue Year to Date: $497 million

Revenue from Commissions: $308 million

Revenue from Fees: $109 million

Average AUM per Rep: N/A

Average Payout per Rep (percent): 92%

Average Production per Rep: $253,000

Number of Dually Registered Reps: 1,420

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