Forgivable Loans Receivable

12 Months Ended

Sep. 30, 2018

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

FORGIVABLE LOANS RECEIVABLE

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 (weighted average interest rate of 6%). These notes have various schedules for repayment or forgiveness based on production or retention requirements being met and mature at various dates through 2023. Forgiveness of loans amounted to $630,000, $693,000 and $788,000 for the years ended September 30, 2018, 2017 and 2016 respectively, and the related compensation was included in commissions, compensation and fees in the statement of operations. In the event the advisor’s affiliation with the subsidiary terminates, the advisor is required to repay the unamortized balance of the note. 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 September 30, 2018 and 2017, no allowance for doubtful accounts was required.

Forgivable loan activity for the fiscal years ended September 30, 2018, 2017 and 2016 is as follows:



Balance, September 30, 2015	$	1,368,000
Advances	1,132,000
Amortization	(788,000		)
Balance, September 30, 2016	1,712,000
Advances	694,000
Amortization	(693,000		)
Repayments	(97,000		)
Balance, September 30, 2017	1,616,000
Advances	581,000
Amortization	(630,000		)
Balance, September 30, 2018	$	1,567,000

There were no forgivable loans outstanding at September 30, 2018 and 2017 attributable to registered representatives who ended their affiliation with the Company’s subsidiaries prior to the fulfillment of their obligation.