<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission File No. 0-20185
Date of Report(date of earliest event reported): October 15, 1996
BHC FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 23-2264646
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
TWELVE HUNDRED
ONE COMMERCE SQUARE
2005 MARKET STREET
PHILADELPHIA, PENNSYLVANIA 19103-3212
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 636-3000
Not Applicable
(Former name or former address, if changed since last report)
This document contains three (3) pages.
<PAGE 2>
ITEM 5. OTHER EVENTS
The Company has reported that affiliates of Private Capital Management (PCM)
met with the Board of the Company at its regular quarterly meeting on Tuesday,
October 15, 1996 and presented the substance of the letter which was filed as
part of their amended 13D filing yesterday. The Board has formed a special
committee of independent directors to evaluate the letter and will respond to
PCM in due course.
As a related matter, on October 16, 1996, USAA Brokerage Services (USAA), a
large Client, advised BHC Securities, Inc.(BHC), the Company's principal
business unit, in writing that it intended to internalize its brokerage
operations in the latter half of 1997. USAA said that because of the news
surrounding the PCM letter and because it was an investor in the Company, it
felt compelled to notify BHC even though the terms of their contract require
only 4 months notice. USAA represents approximately 9% of BHC's total 1995
revenues. USAA has been a Client of BHC for 12 years. Outsourcing through BHC
has enabled USAA to build a large and successful brokerage business.
BHC believes that its services will be valuable to other brokers and that
continuing its strategy of diversifying its clients and services will reduce
its dependence on a few large clients. During 1996 BHC has added 9 new
Clients and has more than 20 prospective clients in the pipeline.
<Page 3>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BHC FINANCIAL, INC.
DATE: October 17, 1996 BY:/s/LAWRENCE E. DONATO
---------------------
Senior Vice President
and Chief Financial
Officer
