1183186--3/8/2006--NATIONAL_FINANCIAL_PARTNERS

related topics

{financial, litigation, operation}

{tax, income, asset}

{acquisition, growth, future}

{system, service, information}

{condition, economic, financial}

{competitive, industry, competition}

{personnel, key, retain}

{customer, product, revenue}

{product, market, service}

{cost, operation, labor}

{cost, contract, operation}

{loss, insurance, financial}

{stock, price, share}

{regulation, change, law}

{loan, real, estate}

Risks Relating to Our Company We may be unsuccessful in acquiring suitable acquisition candidates, which could adversely affect our growth. We may be adversely affected if the firms we acquire do not perform as expected. Competition in our industry is intense and, if we are unable to compete effectively, we may lose clients and our financial results may be negatively affected. Our operating strategy and structure may make it difficult to respond quickly to regulatory, operational or financial problems and to grow our business, which could negatively affect our financial results. Our dependence on the principals of our firms may limit our ability to effectively manage our business. Elimination or modification of the federal estate tax could adversely affect revenue from our life insurance, wealth transfer and estate planning businesses. A change in the tax treatment of life insurance products we sell 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 our revenue. Changes in the pricing, design or underwriting of insurance products could adversely affect our revenues. Because the commission revenue our 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 us. Our business is subject to risks related to litigation and regulatory actions. Our revenue and earnings may be affected by fluctuations in interest rates, stock prices and general economic conditions. If we are required to write down goodwill and other intangible assets, our financial condition and results would be negatively affected. Failure to comply with or changes in state and federal laws and regulations applicable to us could restrict our ability to conduct our business. The geographic concentration of our firms could leave us vulnerable to an economic downturn or regulatory changes in those areas, resulting in a decrease in our revenue. The loss of key personnel could negatively affect our financial results and impair our ability to implement our business strategy. The securities brokerage business has inherent risks. Failure to comply with net capital requirements could subject our wholly owned broker-dealers to suspension or revocation of their licenses by the SEC or expulsion from the NASD. Our business, financial condition and results of operations may be negatively affected by errors and omissions claims. Because our firms clients can withdraw the assets our firms manage on short notice, poor performance of the investment products and services our firms recommend or sell may have a material adverse effect on our business. Our results of operations could be adversely affected if we are unable to facilitate smooth succession planning at our firms. Government regulation relating to the supplemental executive benefits plans we design and implement could negatively affect our financial results. Our business is dependent upon information processing systems. We may overestimate management fees advanced to principals and/or certain entities they own, which may negatively affect our 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--3/8/2006--NATIONAL_FINANCIAL_PARTNERS_CORP