LPL, Ameriprise, Cetera, plus record SEC actions, record annuity sales and "How Not to Suck at Money"

November 19, 2021 3:35 PM

Invesco QQQ and the NCAA are teaming up to launch a simulation to improve financial literacy for college students with several former collegiate and pro athletes serving on the venture’s strategic board. The CFP Board has four new board members. The SEC released its annual report on enforcement actions, and there were record annuity sales in the last year. As always, we saw merger activity, executive appointments and advisors on the move. Scroll through to find what you might have missed this week in financial planning news.

Financial advisors Al Winget, Rob Benton and Andrew Robson dropped Wells Fargo Advisors to join Linsco by LPL Financial, the employee advisor channel of the largest independent broker-dealer. The Charlotte, North Carolina-based practice, Winget Benton Wealth Management, managed $745 million in client assets with its prior firm. Winget Benton marks the second new Linsco branch that LPL has opened this year in North Carolina, which is close to its corporate office in Fort Mill, South Carolina. “We looked at several models over the span of two years, and nothing compared to Linsco,” Benton said in a statement. “We’re excited to be the anchor tenants of a new office, where we can set the tone for the culture and create a positive atmosphere.”

Asset management giant Invesco’s large-cap growth ETF, Invesco QQQ, and the NCAA are teaming up in a new financial literacy video game for college students called “

How Not to Suck at Money

.” The 90-minute simulation takes place in a college town where the students help characters solve various money challenges. After a survey of 1,500 students showed the financial topics that interested them the most, illustrator and artist Jose Mendez and Invesco Global Market Strategist Brian Levitt collaborated on the video game’s development. A strategic board overseeing the game includes retired former NBA star Grant Hill, ex-college softball star and baseball TV analyst Jessica Mendoza and NFL linebacker Jaylon Smith. “I’m excited to have the opportunity to collaborate with Invesco QQQ on this unique financial education program that meets the real-life needs of students with different socioeconomic backgrounds,” Hill said in a statement.

The largest enterprise in Ameriprise’s independent franchise channel, Kuttin Wealth Management, picked up two New York-based teams with $1.1 billion in combined client assets. Financial advisor Richard Kersting’s 1879 Advisors includes seven support staff members, as well as advisors Bette-Ellen Weiss, James Loehle, Nicholas Loehle, Peter Dedel, Tom Cortese, Tyler Palumbo, Bryan Covert and Michael Collins. The team had $950 million in client assets with its prior firm, Bruderman Brothers. “After doing extensive research, we found Ameriprise checked all of the boxes that we were looking for,” Kersting said in a statement. “The firm has an amazing corporate culture and a comprehensive financial planning process that incorporates cutting-edge technology into their platform.” In the other move, advisor Vincent Gianatasio’s team left Cadaret, Grant, where the practice managed $192 million in client assets. Kuttin spans more than 100 registered representatives managing more than $5 billion overall.

The AmeriFlex Group, a Las Vegas-based hybrid RIA and enterprise with Advisor Group’s SagePoint Financial, launched a new practice succession program in collaboration with its strategic advisor, former Cetera Financial Group and Advisor Group CEO Larry Roth. SuccessionFlex offers a succession agreement to advisors including an option to sell 30% to 40% of the practice’s revenue without any of their equity changing hands in the transaction. Advisors can sell the revenue to AmeriFlex or to another advisor within the enterprise. “This innovative program adds an interim step to the traditional succession process, enabling advisors to take some money out of the business while maintaining their stake in it, all while giving them, their families and their clients security during a period of transition,” Roth said in a statement.

Stifel Independent Advisors added its third incoming team in the past three weeks, with the practice led by Dale Herndon in Richmond, Virginia. The team managed $93 million in client assets with its previous firm, Wells Fargo Advisors Financial Network. The trio of incoming practices had a combined $425 million in assets under management with their prior brokerages. “Our decision to affiliate with Stifel Independent Advisors was not made lightly, but was based on our philosophy to continue to provide our clients with the resources and personalized, responsive service that better position them to pursue their long-term financial goals,” Herndon said in a statement. “Stifel Independent Advisors is a growing firm with positive momentum, and we’re excited to be a part of it.”

Independent broker-dealer and RIA Commonwealth Financial Network held its annual conference virtually between Oct. 25 and Nov. 11. The Waltham, Massachusetts-based firm disclosed that the total client assets managed by its more than 2,000 financial advisors has topped $250 billion, while its own managed account platform has topped $155 billion. The event had more than 95 live or on-demand sessions led by 70 speakers. Commonwealth’s 2021 Special Service Award went to advisor Nichole Raftopoulos of Kennebunk, Maine-based Nvest Financial Group. “From serving on Commonwealth’s Advisor and Women’s councils to her involvement with women’s and animal shelters, pro-bono work for U.S. veterans and providing troops with supplies through Operation: With Love From Home, Nichole tirelessly serves her community,” Commonwealth CEO Wayne Bloom said in a statement. “We couldn’t be prouder to have her and the Nvest team be part of our Commonwealth family.”

Two Chicago-area teams dropped Raymond James & Associates to go independent with Cetera Financial Group’s Cetera Advisor Networks and the Summit Financial Networks enterprise. Strutzel Family Wealth Management and Martingale Investment Group managed more than $532 million in client assets with their former firms, and they both operate from offices in Schaumburg, Illinois. Strutzel is a father-son team led by advisors David and Matthew Strutzel. Advisors Ron Kapraun and Julie Bjorklund run the other practice. “We were seeking a firm where we felt a stronger sense of community where we would be considered more than just business partners,” the Strutzels said in a statement. “Cetera and Summit provide growth and business-building resources that will redefine the trajectory of our business that are not available elsewhere.” Across its network of five independent broker-dealers, Cetera spans $340 billion in assets under administration and $119 billion in assets under management.

Venturi Private Wealth, an RIA with 30 advisors and employees and $2 billion in client assets across locations in Oklahoma City and Austin, Texas, received an investment of an undisclosed amount from Bravura Capital. Kent Weldon, an advisory partner with Thomas H. Lee Partners, leads Bravura, a private investment firm. The practice serves ultrahigh net worth clients with a specialty in those who are the first member of their family to amass significant amounts of investable assets. The capital from Bravura will fuel the firm’s expansion in its region. “Venturi’s strategy of building an integrated, market-leading regional company serving clients in the Southwest is different than many other growth strategies I see in the independent space today,” Weldon said in a statement. “I’m impressed by the depth of the Venturi team, the breadth of its services, its commitment to client service and the incredibly deliberate and thoughtful approach the firm has taken in pursuit of its growth goals.”

Kestra Holdings tapped 20-year veteran human resources executive Steve Hardy as the Austin, Texas-based firm’s chief human resources officer. Hardy joined the firm from Fiserv, where he was vice president of human resources. Private equity-backed wealth manager Kestra spans more than $122 billion in client assets managed by 2,400 advisors. “I was immediately drawn to the passion and energy of the Kestra Holdings leadership team, along with their dedication to the company, employees and clients,” Hardy said in a statement. “Our position in the marketplace coupled with our recent business successes demonstrates our commitment to the financial professionals on our platform as well as our most-valued employees who serve them.” The firm has been growing through recruiting recently. In the third quarter, the firm added 13 new teams with 21 registered representatives with more than $2.3 billion in combined client assets with average production per advisor of above $700,000.

The CFP Board has elected four new CFPs to its board: Louis Barajas, Terri Kallsen, Peter Rohr and Martin Seay. “We are excited to welcome Louis, Terri, Peter and Martin to the board of directors as we embark on our new strategic priorities for the next five years,” said

CFP Board Chair-Elect Kamila Elliott

. Barajas is president and partner of MGO Private Wealth. Kallsen is chief operating officer at Wealth Enhancement Group. Rohr is a managing director of Merrill’s private wealth advisor group, The Rohr Group. Seay is department head and associate professor of personal financial planning at Kansas State University, where he teaches in the CFP Board registered undergraduate and Ph.D. programs. His research focuses on borrowing decisions, how psychological characteristics shape financial behavior, and how consumers seek and use financial advice. Martin served as president of the FPA Board in 2020.

Schwab Asset Management expanded its stable of fixed-income separately managed account strategies, adding five Wasmer Schroeder Strategies. Two of the funds are ESG-focused: Wasmer Schroeder Positive Impact Bond strategy (PIBX) is a taxable, limited-duration strategy and the Wasmer Schroeder Positive Impact Tax Exempt strategy (PIFI) is an intermediate-term, high-credit quality municipal strategy. The Wasmer Schroeder team identifies bonds that finance projects and initiatives with positive social or environmental impacts, a feature that distinguishes the funds from other offerings that rely solely on third-party ESG ratings or scoring lists. “Generating income in the current environment is challenging, and investors need solutions that address a wide variety of objectives as well as unique preferences,” said John Sturiale, the head of product management and strategy at Schwab Asset Management. Schwab also added three Wasmer Schroeder funds that focus on higher-yielding sectors. They are: the Intermediate Strategic Tax Exempt strategy (ISTEFI), the Intermediate IG Credit (ITTX+) strategy and the Multi-Sector Income (MITX) strategy. Schwab acquired Wasmer Schroeder’s lineup of tax-exempt and taxable strategies and brought its investment team in house in July 2020.

Fidelity Investments launched Guaranteed Income Direct, a retirement income product that allows individuals to convert a portion of their 401(k) or 403(b) savings into an annuity to provide consistent, pension-like payments throughout retirement. Fidelity said that the product addresses a growing interest among employers and employees for a guaranteed income annuity option that is connected to the company’s retirement savings plan. Any savings not converted stay in an employee’s workplace savings plan. The SECURE Act in late 2019 gave a green light for defined contribution retirement plans to offer annuities and created a new fiduciary safe harbor for plan sponsors that do so.

Warren Averett Asset Management, a Birmingham, Alabama-based RIA that’s part of a CPA firm, entered into an agreement to receive an equity investment from financial services holding company Wealth Partners Capital Group and middle-market private equity firm HGGC. The 22-year-old firm’s more than 40 advisors and employees manage $4 billion in client assets. Its executive team, led by CEO Josh Reidinger, will remain “meaningful shareholders” as part of a transaction of an undisclosed amount that’s expected to close by the end of the year, according to the firms. With the investment, Warren Averett plans to expand throughout the Southeast, especially through M&A deals acquiring wealth management practices with CPAs that have moved into planning services. “The strong track record that WPCG and HGGC have in growing and supporting their partner firms was very appealing,” Reidinger said in a statement. “We believe we have the perfect partners, in addition to our strong ongoing relationship with Warren Averett, to help us go deeper with our clients and provide the capital to expand into new markets.”

Mariner Wealth Advisors is making the ninth acquisition it has unveiled this year, a growth spurt that has pushed it above 1,000 employees and 500 advisors. The Overland Park, Kansas-based RIA consolidator is buying Savant Investment Group, an Emeryville, California-based practice with 240 clients and $770 million in client assets under CEO Scott Lummer. All eight of its employees will remain with the practice and operate under the Mariner name after the close of the deal of an undisclosed amount. “This is an incredible opportunity for our firm to expand our comprehensive financial planning experience to clients and to provide career development for our employees,” Lummer said in a statement. “I’m excited to draw on Mariner Wealth Advisors’ broad array of services to bring even more value to our clients, from insurance and tax planning to estate and trust services.”

The SEC filed 434 new enforcement actions in fiscal year 2021 while ordering $2.4 billion in disgorgement and $1.4 billion in additional penalties, according to the regulator’s annual enforcement report. Whistleblowers received a record $564 million in awards to 108 recipients. The amount of new enforcement actions increased 7% from 2020, although the 697 total enforcement actions ticked down by 3%. Disgorgement fell by a third, but the penalties rose by a third. "This year has seen a number of critically important and first-of-their-kind enforcement actions, as well as record-breaking achievements for our whistleblower program, which we expect will lead to even more successful actions in the future," Gurbir Grewal, director of the SEC’s Division of Enforcement, said in a statement. "Undeterred by the challenges of the pandemic, the dedicated public servants in the Enforcement Division have continued to overcome obstacles to bring these cases that protect investors and promote market integrity."

U.S. annuity sales jumped 12% year-over-year in the third quarter to $62.3 billion, including a record $1.2 billion in fee-based variable products, according to the LIMRA Secure Retirement Institute’s official figures for the third quarter. In the first nine months of the year, sales are up 19% compared to the same time in 2020. “The growth in fee-based VA sales were driven by registered investment advisors and broker dealers,” Todd Giesing, the director of SRI Annuity Research, said in a statement. “We believe increased interest in tax deferral coupled with technology solutions aiding operational challenges are playing a role in the rise of VA fee-based products.”

Bank-based wealth program First Citizens Investment Center left Cetera Financial Group’s Cetera Investment Services for LPL Financial’s Institution Services channel. The community bank, which is based in Mason City, Iowa, with an additional office in Minnesota, managed about $235 million in client assets with its prior firm. First Citizens Program Manager Nicole Rognes Olson leads a team including investment executive Holly Miller, financial advisors Michael Castle and Arcon Concepcion and office support staff members Carol Juhl and Bryan Lathrop. “By aligning with LPL, we now have access to innovative technology and a broad range of resources to enhance how we serve the diverse population of people who come through our doors,” Miller said in a statement. “We believe our investment center program is really taking off, and this move is the catalyst for that growth engine.

The CFP Board Center for Financial Planning is adding 10 more scholarships to the more than 60 awarded each year under the Kaplan Company’s Diversity Scholarship Program for its 10-week exam preparation review for aspiring CFPs at its College for Financial Planning. People from historically excluded groups in the financial planning profession will receive the new scholarships.

The application form

is available on the CFP Board’s website, with a Dec. 5 deadline for the first batch of scholarships. “The College for Financial Planning® strongly supports the CFP Board Center for Financial Planning’s efforts to create a more diverse workforce so that every American has access to competent, ethical financial planning advice,” Dirk Pantone, the president of the College for Financial Planning, said in a statement.

Wipfli Financial Advisors, a Milwaukee-based RIA with more than $5 billion in client assets and a subsidiary of a national accounting and consulting firm, secured an agreement to acquire a fee-only practice called Redwood Wealth Management. The incoming practice out of Alpharetta, Georgia, has more than $300 million in assets under management. Advisors Shawn Meade and Lane Steinberger lead a team of seven at the 20-year-old firm. "Whether it's delivering an exceptional client experience or giving our team members the opportunities they need to continue growing, we share the same values,” Meade said in a statement. “By joining together, we can take our commitment to our clients and associates to the next level." The transaction of an undisclosed amount is slated to close Dec. 31.

A midsize independent broker-dealer catering to high net worth clients and specializing in alternative products, Arete Wealth, reached a two-year agreement with a provider of art investment securities named Masterworks to open an affiliated branch in New York. The parties didn’t disclose the terms of their agreement, which doesn’t include any equity ownership changing hands. They aim to recruit up to 50 registered representatives to the branch together, with Arete servicing Masterworks’ offerings of investment products derived from art and taking on the compliance oversight as well. The new branch will supplement the Chicago-based firm’s existing Art & Wine Advisory group, giving clients access to more experts in the alternative products. "This agreement underscores Arete Wealth's efforts on behalf of our valued clients to seek the market's best alternative investments," said Arete Wealth Founder and CEO Joshua D. Rogers. "The collaboration with Masterworks also provides a perfect complement to our Art & Wine advisory group, a practice that we promote with a savvy approach and high standards for any desired level of investing."

Genstar Capital, the private equity firm that is majority owner of Cetera Financial Group, is doubling down on its separate bet on governance, risk and compliance in wealth management. ACA Group and Foreside Financial Group signed a definitive agreement to merge, with Genstar as majority owner after acquiring a controlling interest in ACA Group from Starr Investment Holdings upon close of the deal in the first half of next year. Genstar acquired Foreside in a deal earlier this year, and the combined firm will have more than 1,100 employees with 5,000 clients in 16 offices worldwide. ACA Group’s CEO, Shvetank Shah will lead the firm after the merger. “Partnering with Foreside and Genstar will be a game-changer in our industry,” Shah said in a statement. “ Both firms share the same commitment to create a category leader in a rapidly evolving space.”

Equity Advisor Solutions, a Denver-based custodian for independent advisors, has integrated cryptocurrencies into its trading technology, making it one of the first custodians to support standard, alternative and crypto trades on a single platform. The integration allows EAS to provide a consolidated view across the asset classes and include them all in an advisor’s regular reporting and billing. All trades are settled the next business day. EAS allows for advisors to purchase and hold crypto in both IRAs and non-qualified accounts.

Thumbnail for Video: Riskalyze Demo, In|Vest West 2018

Lauri Schultz is the new chair of Riskalyze’s board of directors, five months after

Lori Hardwick stepped down

from the job in the wake of a marketing misfire. Schultz’s resume is light on experience within the wealth management industry but includes more than 30 years of experience in technology companies, including Sage, Intuit, KPMG and Galvanize, where she became Canada’s first female CEO to lead a technology company to a $1 billion valuation. "I know what it takes to help complex enterprises implement solutions that drive business value,” Schultz said in a statement.

Eaglebrook Advisors, which provides crypto SMAs to more than 500 financial advisors, is launching a new educational platform to train and educate advisors and their clients on the digital asset market. Eaglebrook IQ offers a “Crypto 101” training course, deep-dive research reports and weekly market commentary. “We strongly believe that financial advisors need to be educated on the crypto market before investments are made in the asset class,” said Christopher King, CEO of Eaglebrook Advisors.

InspereX has signed an agreement to make its BondNav fixed income market technology exclusive to Goldman Sachs Advisor Solutions, the bank’s custodian for independent RIAs. BondNav aggregates retail, middle and institutional bond markets to digitize the process of accessing fixed income for RIAs. RIAs using Goldman can trade directly as well as take advantage of BondNab’s on-demand features, such as execution seeking price improvement. Along with the exclusive license, Goldman increased its equity stake in InspereX.