Edward Jones, LPL, Cetera, plus Alzheimer’s fundraising and 401(k) guidance

December 24, 2021 1:02 PM

The Department of Labor wants to clarify a statement made under the Trump administration about the use pf private equity investments in 401(k) plans. Edward Jones has raised more than $30 million toward its $50 million goal to fund Alzheimer’s research. There were hirings and moves, as usual. Scroll through to find what you might have missed this week in financial planning news.

The Biden Administration’s Labor Department issued a statement to 401(k) providers, financial advisors and other retirement professionals that clarifies a letter from the agency last year under the Trump Administration about

the use of private equity investments

in employer plans. The department’s Employe Benefits Security Administration sent out the statement this week in response to “stakeholder concerns that the [June 2020] letter could be marketed as broadly endorsing the benefits of private equity investments — outside the letter’s limited context — while downplaying associated risks,” according to the agency. “The Supplemental Statement emphasizes the limited focus of the Information Letter as a response to large plan sponsors who offer both defined benefit plans and participant-directed retirement savings plans, and who invest in private equity for their defined benefit plans but do not do so for the participant-directed plans,” Acting Assistant Secretary for Employee Benefits Security Ali Khawar said in a statement. “After considering reactions to the Information Letter by stakeholders, the department concluded it was important to release a statement cautioning fiduciaries, especially in small plans, against marketing efforts that may misrepresent the Information Letter as a U.S. Department of Labor endorsement or recommendation of these investments for 401(k) plans.”

After drawing more than 11,000 people to its Walk to End Alzheimer’s events in 2021, Edward Jones has reached $30 million in donations for the Alzheimer’s Association in the past five years. The company has surpassed 60% of its goal to top $50 million in commitments to the nonprofit by the end of 2025. Part of the money will support a clinical trial at Washington University in St. Louis, the Dominantly Inherited Alzheimer Network Trials Unit Primary Prevention Trial. It’s the world's first clinical trial on whether Alzheimer’s disease is preventable 20 or 25 years before the onset of symptoms through treatments of the brain proteins that some believe to be the primary cause. "By funding research, participating in walks and educating our financial advisors and our clients, our 50,000 associates and branch teams are raising awareness of this disease and providing care and support to countless families throughout the country," Edward Jones’ principal for the client strategies group, Ken Cella, said in a statement.

Financial advisors Robert and Michael Madden of Melville, New York-based Sterling Wealth Group left MassMutual’s brokerage, MML Investors Services, for LPL Financial and the JFC Advisor Network enterprise. The elder Madden, a Navy veteran and 35-year advisor, and his son, a 20-year industry veteran, managed about $390 million in client assets with their prior firm. “We spent at least a year of due diligence to determine what was best for our clients and business,” Bob Madden said in a statement. “We looked at technology capabilities, breadth of investment options, research and resources before concluding that LPL’s integrated platform is simply unrivaled.”

MAI Capital Management, an RIA consolidator owned by a financial services distribution company, completed its fourth acquisition since Galway Holdings acquired the firm in September. Advisors Jay Levin and Ari Weiner of Investment Planning Associates joined MAI under its purchase of the Rockville, Maryland-based RIA for an undisclosed amount. The practice has about $235 million in client assets after more than 30 years in business. “It was important for IPA to partner with a firm that aligned with our core principles and would offer our clients expanded investment opportunities,” Levin said in a statement.

Midsize independent brokerage Grove Point Financial made its second new hiring of a veteran recruiting executive of the year, appointing Mark Weinstein as its vice president of business development for the eastern region. Weinstein joins the Kestra Holdings subsidiary, Rockville, Maryland-based Grove Point, which changed its name from H. Beck earlier this year. In the new role, Weinstein will report to the firm’s head of business development, Rob Engle, who also came to Grove Point in 2021. Weinstein brings 16 years of industry experience with tenures at E-Trade Advisor Services, Spire Investment Partners and LPL Financial. “Over this past year, Grove Point Financial has seen exceptional growth, and I’m eager to jump into this new role,” Weinstein said in a statement.

Financial advisor Daniel Derrig left the private bank wealth unit of The Huntington Investment Company to join Cetera Financial Group’s Cetera Advisors as the practice’s brokerage and Prosperity Advisors as its office of supervisory jurisdiction. The Akron, Ohio-based practice managed $110 million in client assets with its prior firm. "I am thrilled to join Prosperity Advisors and Cetera, and further support my clients who deserve the best infrastructure and technology for financial advice possible," Derrig said in a statement.