|
Notes Receivable from Financial Advisors
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| Notes Receivable from Financial Advisors | 9. Notes Receivable from Financial AdvisorsFrom time to time, the Company’s broker-dealer subsidiaries may make loans to their financial advisors. These loans are primarily given to newly recruited brokers to assist in the transition process. As described in Note 3, in connection with the Securities America acquisiton, the Company made retention loans aggregating $20,000 to Securities America’s financial advisors. The notes receivable balance is comprised of unsecured non-interest-bearing and interest-bearing loans (interest ranging from 0% to 8.0%) to the financial advisors. These notes have various schedules for repayment or forgiveness and mature at various dates through 2017. The notes are amortized over the forgiveness period which generally ranged from 3 to 5 years. Receivables are continually evaluated for collectability and possible write-offs and an allowance for doubtful accounts is provided where a loss is considered probable. As of December 31, 2011, the allowance amounted to $339. The net carrying value of notes receivable, which are recorded at cost, as of December 31, 2011 and 2010 was $44,308 and $1,464, respectively, which approximates fair value. Fair value is determined based on a valuation technique to convert future cash payments or forgiveness transactions to a single discounted present value amount |