Retiring MSC Chief Reflects on LPL, Future of Small Broker-Dealers
Mutual Service Corporation, the largest of the three Pacific Life broker-dealers being acquired by LPL with 1,300 advisors, is saying good-bye to John Poff. The former president and CEO of MSC will serve as a consultant through the end of 2007, and MSC Chairman John Dixon is stepping in as the CEO. Poff served as chair of the Financial Services Institute in 2006.
“I’m retiring after 22 years,” says Poff. “I will fulfill my responsibilities through December.”
Poff says his desire to retire is based on age – not LPL’s acquisition of MSC. “I’ll be 60 in December as well.”
He intends to stay on the board of FSI through the end of the year and “be out of the industry in 2008.” He’ll likely split his time between Florida and Colorado.
What’s his reaction to the LPL deal? “MSC has been in negotiations and discussions for some time,” Poff explains. “And there were several potential buyers before LPL. The management team is very happy with the ultimate decision. It’s good for the advisors, employees and Pacific Life. It keeps MSC’s reputation intact and allows Pacific Life to get out of distribution.”
And what about MSC’s ongoing arrangement, which will continue after the acquisition, to clear through Pershing rather than clear through LPL? “It’s not a surprise. LPL recognizes the value of flexibility for the representatives. This can help them in future recruiting.”
“This issue was, of course, discussed in detail. It’s a committed, meaningful strategy that’s been well thought out by LPL,” Poff adds.