LPL, Raymond James, Ameriprise; plus UBS splits YES cases; Stifel offering employees stock

April 3, 2022 5:22 PM

Scroll down our cardshow to catch up on the news bits that made up the last week of the world of wealth management.

SEC’s New York regional director appointed next director of examinations

After more than two decades of service with the SEC, Acting Examinations Director Daniel Kahl is leaving the regulatory agency. Current New York Regional Director Richard Best will take over as the acting head of the Division of Examinations, while the associate regional director of enforcement in the New York office, Lara Shalov Mehraban, will replace Best in the position atop the regional office. “Our examinations program is so crucial to the SEC’s work to protect investors, and we have benefited from Dan’s leadership, professionalism and collaboration,” SEC Chair Gary Gensler said in a statement. “Both Rich and Lara bring a depth of experience and knowledge to these roles, and I look forward to continuing to work with them.”

Private Advisor Group launches equity sharing program

Merchant Investment Management-backed Private Advisor Group started an Advisor Alignment and Equity Program that includes the chance for the RIA enterprise’s more than 700 financial advisors to sell a portion of their revenue in order to gain equity in Private Advisor. The enterprise is offering its practices a review of short- and long-term goals spanning potential capital needs relating to succession planning, marketing, hiring, M&A deals and more. The program “creates an exclusive opportunity to invest in our community’s collective growth which inspires idea sharing and enhanced sustainability,” Private Advisor CEO Robert “RJ” Moore said in a statement. “The interest in our advisors’ success goes beyond a commitment; it’s a shared investment.”

Stifel gives 4,200 employees a stock grant

St. Louis-based wealth and asset manager Stifel Financial is giving about half of its employees a one-time restricted stock unit grant valued at $5,000 each as part of an effort to make every member of its staff a shareholder. About 4,200 employees will receive the one-time grant and qualifying new staff members will receive it in the future, placing Stifel on track to extend stock to all of its workers upon completion of the program. “We believe fostering an ownership mindset has been an essential part of our more than two decades of growth and success,” CEO Ronald Kruszewski said in a statement. “Extending ownership to all eligible associates is yet another example of Stifel’s ‘one firm’ culture where everyone is empowered to think and care about the company like an owner.”

With Vestwell as plan administrator, Connecticut launches private sector 401(k)s

More than 600,000 workers in Connecticut have a new retirement savings option after the office of the state’s comptroller, Natalie Braswell, created MyCTSavings, a 401(k) account with Vestwell as the plan administrator. Businesses must register for the program if they have more than five employees but don’t currently offer a qualified retirement savings plan. The state will send notices to about 30,000 employers in the state in April and employees can open accounts on a voluntary basis. “Everyone deserves a financially secure retirement,” Braswell said in a statement. “The MyCTSavings program creates new opportunities for workers to plan for their futures and fills a critical need in the marketplace. The plan is designed to be easy for employers to maintain and is optional for workers to participate.”

LPL’s Strategic Wealth Services adds fifth team of 2022

Financial advisors Leslie Shenkler and Daryl Lipkin launched the newly independent practice Alcove Private Wealth in Princeton, New Jersey, after leaving UBS. The team managed $265 million in client assets with their prior firm, and they became the fifth team this year and No. 22 overall to choose LPL Financial’s Strategic Wealth Services for independence with elevated layers of support services from the corporate office. “We looked for a structure and firm that would give us the ability to do that, and made the decision that independence was essential — we needed flexibility and control over our business,” Shenkler said in a statement.

Ex-Edward Jones advisor with $135M goes independent with Raymond James

Raymond James Financial Services recruited financial advisor Samuel Martin and client service associate Janis Cook of Beaufort, South Carolina-based SJ Martin Wealth Management. The practice left Edward Jones, where Martin had managed $135 million in client assets. “I now have the autonomy to run my own business, while gaining the extensive tools and resources of one of the largest wealth management firms in the country to serve my clients on a deeper level,” Martin said in a statement.

Arkadios adds former Securities America team with $240M

San Antonio, Texas-based WhiteStone Wealth Management dropped Advisor Group’s Securities America for Arkadios Capital. Led by financial advisors Steve Markey and Patrick Lynch, the 17-year-old practice managed more than $240 million in client assets on behalf of 200 households with their prior brokerage. “We found Arkadios Capital could deliver a more personalized, common-sense approach to our business while providing broader options and solutions for our clients,” Markey said in a statement. “This move means we can deliver a better service experience to our clients while continuing to grow with a flexible partner in Arkadios.”

Raymond James to acquire bond market-maker SumRidge Partners

SumRidge Partners, a market maker with 45 employees specializing in corporate, municipal and institutional-preferred bond products, will fold into the Raymond James Fixed Income Capital Markets division under an acquisition. The parties didn’t disclose the financial terms or closing date of the transaction, which is subject to regulatory review as well. The incoming Jersey City, New Jersey-based firm will maintain the same office and leadership under CEO Tom O’Brien and Chairman Kevin Morano after the close. “This acquisition is further evidence of our commitment to provide cutting-edge technology to advisors, clients and stakeholders,” Raymond James CEO Paul Reilly said in a statement. “Beyond valuing entrepreneurialism and teamwork, we both operate conservatively by prioritizing long-term decision-making with high standards for performance and integrity.”

Ameriprise recruits ex-Wells Fargo advisor with $125M

Financial advisor Ed Gordon dropped Wells Fargo Advisors to join the employee channel of Ameriprise in its Deerfield, Illinois-based branch. The team managed $125 million in client assets with the wirehouse, and Gordon has hired registered client service associate Violette Matsas since joining Ameriprise. Gordon’s father Myles launched the practice in 1984, a decade before Ed Gordon started his tenure there. “Ameriprise has a wide range of products and solutions,” Gordon said in a statement. “The Ameriprise transition team has been amazing. They understood the unique preferences of my clients, taking the time to ask the right questions so they can get the nuances right when setting up their accounts.”

UBS prevails in one YES arbitration case, ordered to pay over $1M in another

In keeping with the nearly even split across about 100 cases involving a controversial options overlay strategy at UBS known as the Yield Enhancement Strategy, the wirehouse won the denial of one client’s complaint while being ordered to pay another customer an award of $1.18 million in compensatory damages. In a March 24 decision by a New York-based panel, arbitrators unanimously denied the claim of the Derish M. Wolff 2012 Irrevocable Trust in a request for damages of $500,000 to $1 million in connection with the strategy and allegations including fraud and misrepresentations. That same day, a Houston-based panel delivered a decision holding UBS liable for the award payment plus interest. Claimants B. Terry Bryant and Memorial Rock Investments had accused the firm of fraud and negligence in connection with the strategy.

Cresset poaches advisors from BofA, Fidelity and J.P. Morgan

Multifamily office Cresset Asset Management, a Chicago-based firm with more than $23 billion in assets under management, picked up a trio of advisors who, respectively, left Bank of America’s Private Bank, Fidelity Investments and J.P. Morgan Securities. Chris Georgopoulos joined Cresset’s West Palm Beach, Florida-based office; Thomas McKeown moved to its headquarters in Chicago; and Beth Kytle Chandler switched to the firm’s Atlanta office. “We are thrilled to welcome Chris, Tom and Beth to the Cresset team,” Cresset co-Chairman Doug Regan said in a statement.

College savings plans jumped 11% in 2021

Assets in 529 plans for higher education costs rose 11% in 2021 to $480.3 billion by the end of that year, according to the College Savings Plans Network. The number of accounts increased by 5% year-over-year to 15.7 million, while the average account size surged by 6% to $30,652. It’s the first time that the average account size has topped $30,000, and 38% of all 529 plan users have started automatic contributions to their accounts, according to the organization. “The continued growth in 529 savings plans tells us that families across the country believe in education and are committed to planning for educational expenses,” College Savings Plans Network Chair and Assistant Nebraska State Treasurer Rachel Biar said in a statement. “Despite the various challenges faced during the pandemic, families are looking ahead to building better futures.”

MassMutual starts program to help Black professionals certify as minority businesses

MassMutual and the National Supplier Development Council have started a strategic partnership to help the wealth management and insurance firm’s Black financial professionals get certified as minority business enterprises. MassMutual has pledged to cover the cost of certification for 100 professionals eligible to receive up to $500 in grants. Once the professionals are certified, they’ll get access to business leads, training programs at the council’s academy and networking events held throughout the year. The strategic partnership begins in select markets this month. “We are committed to not only growing our diverse supplier population, but also investing in them, which is why we are thrilled to create this partnership with the NMSDC to offer certification to financial professionals affiliated with MassMutual,” the firm’s supplier diversity manager April Cimorelli said in a statement. “NMSDC certification is the platinum standard in supplier diversity and yields significant benefits for those who meet its standards.”

Raymond James recruits ex-Merrill Lynch team with $350M

Financial advisors David and Mitch Vallie, as well as registered client service associate Michelle Loney, left Merrill Lynch for Raymond James & Associates in the firm’s Grand Blanc, Michigan-based branch. Operating as Vallie Wealth Management of Raymond James, the father-son team managed $353 million in client assets with their prior firm. “Our clients and the trust they put in us have always been our top priority,” David Vallie said in a statement. “We were drawn to Raymond James largely because the firm shares the same commitment.”

Creative Planning acquires San Francisco-area RIA with $1.8B

Private equity-backed RIA consolidator Creative Planning has acquired Emery Howard, an RIA based in the San Francisco Bay Area managing $1.8 billion in assets under management for high net worth clients. “We wanted to align with a firm with outstanding investment and planning capabilities and that would provide operational scale to allow our team to focus exclusively on client relationships,” Emery Howard President Michael Howard said in a statement. “Peter Mallouk and the Creative Planning team have given us tremendous resources to provide a greater offering in a holistic and comprehensive way.”

Stifel independent arm adds Air Force veteran’s practice

Cedric Edwards, a U.S. Air Force veteran and 22-year financial advisor based in Schertz, Texas, left Edward Jones for Stifel Independent Advisors. The practice managed $132 million in client assets with its prior firm. “I’m extremely confident that my partnership with Stifel Independent Advisors offers a clear opportunity to assist my diverse client base,” said Edwards. “The firm relationship that Stifel offers me and my clients will assist us in our endeavor to make their lives better.”

J.P. Morgan Wealth Management’s branch-based unit taps new regional directors

Chase Wealth Management, the branch-based unit of J.P. Morgan Wealth Management, has appointed three new regional directors in key markets for the firm. Mark Adams will oversee advisors and market directors in 200 branches across North Carolina, South Carolina, Arkansas, Mississippi, Alabama, Oklahoma and Louisiana. Don Bausley is the regional director of the Mountain Region, spanning 170 branches, while Bryan Harada manages more than 160 branches in the North Los Angeles Region. Each of them were previously with the firm. “Advisors help customers in their local communities make the most of their money and work toward their goals and they need strong leadership to lean on,” Chase Wealth CEO Eric Tepper said in a statement. “I’m proud to have Mark, Bryan and Don leading J.P. Morgan Wealth Management’s expansion in these key regions as we continue to invest, hire advisors and grow the business.”

Wealth practice opens seventh office

Adaptation Financial Advisors, a hybrid RIA that uses Cambridge Investment Research as a brokerage and manages $750 million in client assets, expanded to Tulsa, Oklahoma, with the opening of its seventh office. Financial advisor Jason Sauer, a military veteran, left Miller Private Wealth to join Adaptation and launch the new location. "I am very excited to serve the million and counting residents of Tulsa. I have looked for a firm that provides trusted, independent advice for my clients, and it took bringing Adaptation to Tulsa to make that happen,” Sauer said in a statement. “Our vision for the Tulsa community over the next decade is to empower families to achieve financial freedom through great leadership.”

Hybrid RIA with $220M chooses Commonwealth as its brokerage

Financial advisors Dianne Webb, Rhonda Shurtleff, Becky Robey and Catherine Hyder of Orlando, Florida-based Stonebridge Financial Planning Group left Triad Advisors for Commonwealth Financial Group. The ensemble practice managed $220 million in client assets with its prior brokerage. “Commonwealth’s 2.1:1 advisor-to-staff ratio means there’s always someone on hand to help,” Robey said in a statement. “Moving away from using different platforms that didn’t sync well to having more reporting functionality and software integration will save us time and allow us to focus on delivering the best experience to our clients.”

$450M practice launches employee-owned RIA with Mariner’s platform arm

Mariner Platform Solutions, a division of private equity-backed RIA consolidator Mariner Wealth Advisors, which offers a technology platform and other services to independent practices, helped launch Ocean Heights Advisors in Newport Beach, California. The former practice of Miracle Mile Advisors opened its new employee-owned firm March 1 under founding advisors Kevin O’Grady and Kevin Barlow. “At Ocean Heights, we pride ourselves in taking a personalized approach to our business,” Barlow said in a statement. “Partnering with Mariner Platform Solutions will provide us with support on many of our back-office functions such as operations, compliance and marketing, allowing us to focus our time on our clients.”

RetireOne adds 2 new executives

RetireOne, a digital insurance platform in San Francisco for independent advisors, welcomed Tom McNeela as its director of client experience and Jeff Cusack as senior managing director of strategic accounts. McNeela’s 25-year career includes experience as a life insurance and annuity wholesaler, operations back-office leader and leader of a national sales education team at Allstate Financial Services. Cusack previously held leadership positions at JPMorgan, Charles Schwab, Smith Barney’s Consulting Group (now Morgan Stanley) and, most recently, Nuveen Investments. McNeela and Cusack join RetireOne on the heels of its launch of Constance, a zero-commission contingent deferred annuity created in partnership with Midland National Life Insurance Company.

UBS, Envestnet and iCapital partner on Alternatives Exchange

Envestnet clients now have 35 alternative investment funds via the new Alternatives Exchange, a marketplace launched in collaboration with UBS and iCapital. The launch comes in response to increased demand for alternatives among HNW investors, who are expected to increase allocation to private equity by 19% annually. Alternatives Exchange is powered by iCapital’s technology infrastructure, and documents and reporting will be integrated into the Envestnet and Tamarac platforms. Advisors can also access the AltsEdge Certification Program, which iCapital developed with the Chartered Alternative Investment Analyst Association to educate advisors on alternative investments.

Apex secures New York BitLicense

Apex Crypto, a subsidiary of digital custodian Apex Fintech Solutions, has been approved for a BitLicense, a license issued by the New York State Department of Financial Services that allows Apex to offer crypto trading to investors in the state. Similar to Apex Clearing, Apex Crypto supports execution, clearing and custody across 34 different tokens. Several popular fintech companies use Apex Crypto, including Webull Pay, Public.com, Stash and Titan Invest.

Summit raises $20 million

Summit Wealth Systems, a new wealthtech company founded by industry veteran Reed Colley, has raised $20 million in Series A funding led by Arena Holdings and Filbert Holdings. Colley, who was the founder and former CEO of portfolio management technology Black Diamond (now owned by SS&C), said he returned to the wealthtech space to provide tools that can keep up with investors’ demands for personalization. Summit provides a “WealthOS” that uses cloud-native technology to integrate wealth modeling, financial planning, client collaboration tools, portfolio management and performance reporting.