1183186--2/22/2007--NATIONAL_FINANCIAL_PARTNERS

related topics

{financial, litigation, operation}

{tax, income, asset}

{system, service, information}

{product, market, service}

{acquisition, growth, future}

{condition, economic, financial}

{personnel, key, retain}

{customer, product, revenue}

{cost, operation, labor}

{regulation, change, law}

{cost, contract, operation}

{stock, price, share}

{loss, insurance, financial}

{loan, real, estate}

{competitive, industry, competition}

Risks Relating to the Company The Company may be unsuccessful in acquiring suitable acquisition candidates, which could adversely affect the Company s growth. The Company may be adversely affected if the firms it acquires do not perform as expected. Competition in the Company s industry is intense and, if NFP is unable to compete effectively, NFP may lose clients and its financial results may be negatively affected. The Company s dependence on the principals of its firms may limit its ability to effectively manage its business. Elimination or modification of the federal estate tax could adversely affect revenue from the Company s life insurance, wealth transfer and estate planning businesses. A change in the tax treatment of life insurance products the Company sells or a determination that these products are not life insurance contracts for federal tax purposes could reduce the demand for these products, which may reduce the Company s revenue. Changes in the pricing, design or underwriting of insurance products could adversely affect the Company s revenue. Because the commission revenue the Company s firms earn on the sale of certain insurance products is based on premiums and commission rates set by insurers, any decreases in these premiums or commission rates could result in revenue decreases for the Company. The Company s business is subject to risks related to litigation and regulatory actions. The Company s revenue and earnings may be affected by fluctuations in interest rates, stock prices and general economic conditions. If the Company is required to write down goodwill and other intangible assets, the Company s financial condition and results would be negatively affected. Failure to comply with or changes in state and federal laws and regulations applicable to NFP could restrict the Company s ability to conduct its business. The geographic concentration of the Company s firms could leave the Company vulnerable to an economic downturn or regulatory changes in those areas, resulting in a decrease in the Company s revenue. The loss of key personnel could negatively affect the Company s financial results and impair the Company s ability to implement its business strategy. The securities brokerage business has inherent risks. Failure to comply with net capital requirements could subject the Company s wholly owned broker-dealers to suspension or revocation of their licenses by the SEC or expulsion from the NASD. The Company s business, financial condition and results of operations may be negatively affected by errors and omissions claims. Because the Company s firms clients can withdraw the assets its firms manage on short notice, poor performance of the investment products and services the Company s firms recommend or sell may have a material adverse effect on the Company s business. The Company s results of operations could be adversely affected if the Company is unable to facilitate smooth succession planning at its firms. Government regulation relating to the supplemental executive benefits plans the Company designs and implement could negatively affect its financial results. The Company s business is dependent upon information processing systems. The Company may overestimate management fees advanced to principals and/or certain entities they own, which may negatively affect its financial condition and results. NFPSI relies heavily on Pershing and Fidelity, its clearing firms, and termination of its agreements with the clearing firms could harm its business.

Full 10-K form ▸

1183186--2/22/2007--NATIONAL_FINANCIAL_PARTNERS_CORP