FORGIVABLE LOANS RECEIVABLE

6 Months Ended

Mar. 31, 2016

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

From time to time, the Company's operating subsidiaries may make loans, evidenced by promissory notes, primarily to newly recruited independent financial advisors as an incentive for their affiliation. The notes receivable balance is comprised of unsecured non-interest-bearing and interest-bearing loans (interest rates ranging up to 9%). These notes have various schedules for repayment or forgiveness based on production or retention requirements being met and mature at various dates through 2020. Forgiveness of loans amounted to $324,000 and $149,000 for the six months ended March 31, 2016 and 2015, respectively, and the related compensation was included in commissions, compensation and fees in the condensed consolidated statements of operations. In the event the advisor’s affiliation with the subsidiary terminates, the advisor is required to repay the unamortized balance of any notes payable.

The Company provides an allowance for doubtful accounts on the notes based on historical collection experience and continually evaluates the receivables for collectability and possible write-offs where a loss is deemed probable. As of March 31, 2016 and September 30, 2015, no allowance for doubtful accounts was required.

Forgivable loan activity for the six months ended March 31, 2016 is as follows:



Balance, October 1, 2015	$	1,368,000
Additions	523,000
Amortization	(324,000		)
Balance, March 31, 2016	$	1,567,000

There were no unamortized loans outstanding attributable to registered representatives who ended their affiliation with the Broker-Dealer Subsidiaries prior to the fulfillment of their obligation.