Annual report pursuant to section 13 and 15(d)

Notes Receivable from Financial Advisors

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Notes Receivable from Financial Advisors
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Notes Receivable from Financial Advisors
Notes Receivable from Financial Advisors

From 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 up to 8.0%) to the financial advisors. These notes have various schedules for repayment or forgiveness and mature at various dates through 2021. The notes are amortized over the forgiveness period which generally ranges 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, 2013 and 2012, the allowance amounted to $419 and $628, respectively.

The net carrying value of notes receivable, which are recorded at cost, as of December 31, 2013 and 2012 was $31,751 and $39,148, 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 (Level 2 inputs).