Raymond James, J.P. Morgan, RBC, plus FPA president-elect, financial education and more

September 24, 2021 4:21 PM

Raymond James attracted several advisors this week, as did LPL Financial, J.P. Morgan and others. Financial planning company eMoney Advisor developed some handy financial education content for its app, the Financial Planning Association has new leadership, and the North American Securities Administrators Association has data on firms’ cybersecurity progress. Scroll through to find what you might have missed this week in financial planning news.

Financial advisors Peppi Talley and Jessica Hall left BBVA to join Raymond James & Associates in Birmingham, Alabama. The team, which includes associate Fletcher Talley and client service associates Kay Hughes and Lindsay Madonia, managed more than $250 million in client assets with their prior firm. “While the firm’s reputation preceded it, after extensive due diligence we found that the culture and ethics at Raymond James truly are the best fit for our clients,” Talley, a 35-year industry veteran, said in a statement. “We have the firm’s support to continue to do business the way we always have, by putting our clients first.”

An RIA with a specialty serving Major League Baseball athletes and their families has merged into MAI Capital Management. Marriottsville, Maryland-based Geier Asset Management and Geier Financial Management do business as Winpoint Financial and manage $390 million in assets under management. MAI has $11.8 billion in AUM after completing its fourth deal of the year and the first since financial services distribution company Galway Holdings announced that it’s purchasing a majority of the firm in a deal expected to close by the end of the month. Geier is a 22-year-old firm led by founder Joseph “Joe” Geier and Vice President Brian Woods. “We are very excited that this merger will position us to continue to serve our clients’ evolving needs and set the stage for continued growth,” Geier said in a statement.

A new publicly traded special purpose acquisition company called Cartesian Growth Corporation will form under a deal expected to close in the first quarter of next year, creating a company with equity value of $1.4 billion and $54 billion in global assets under management. Tiedemann Group and Alvarium Investments are combining under the deal into Alvarium Tiedemann Holdings. Alvarium is an investment firm, global multifamily office and merchant banking firm with 220 employees in 10 countries, while Tiedemann is an international wealth management office catering to high net worth clients and family offices with $25 billion in assets under advisement. The combined company’s stock will trade under the ticker “GLBL” on the Nasdaq exchange. “We are thrilled to partner with Alvarium to establish a truly unique global investment firm in Alvarium Tiedemann,” Michael Tiedemann, CEO of the Tiedemann Group, said in a statement. “Alvarium brings a culture of entrepreneurism and a breadth of global capabilities and expertise that will complement our existing client experience. I believe the combination of talent and geographic reach with Cartesian’s access to capital will provide the permanence needed to continue to grow and evolve a dynamic investment platform.”

A former Dynasty Financial Partners executive joined Commonwealth Financial Network to lead the firm’s expansion in the fee-only RIA channel. The Waltham, Massachusetts-based independent broker-dealer hired Alexander Hansen as its senior vice president of RIA compliance. He reports to Paul Tolley, Commonwealth’s managing principal of compliance. In addition to his time as Dynasty’s chief compliance officer, Hansen has had tenures in compliance roles with Citigroup Global Markets and Raymond James. “Our industry and the regulatory landscape are changing rapidly, and so are our advisors’ business models,” Tolley said in a statement. “Alex’s strategic vision for RIA compliance support, his deep understanding of compliance technology solutions, and consultative approach will help us accelerate our RIA recruitment and position our valued advisors for success.”

Examinations of state-registered investment advisors showed that the firms have made progress on cybersecurity but have work to do when it comes to protecting older adults and other vulnerable people from exploitation, according to the North American Securities Administrators Association. Out of 1,206 exams by state securities regulators’ offices, 59% of the practices had no policies or procedures in place for protecting the potential victims of scams and aggressive sales tactics. On the other hand, deficiencies relating to cybersecurity tumbled by more than 20 percentage points since 2019 to just 5.3% of state-registered RIAs. The top five areas of deficiencies were: registration (44%); books and records (41.7%); contracts (30.5%); supervision and compliance (29.5%); and advertising (19.7%). “The results of this multi-state coordinated initiative show that investment advisers must make improvements in recognizing and reporting cases of suspected abuse,” NASAA President Lisa Hopkins said in a statement. “Our hope is that this data will foster greater and earlier detection and reporting of suspected financial exploitation of older Americans.”

Growing midsize RIA and independent broker-dealer Coldstream Wealth Management is acquiring a practice that will expand its size to 30 advisors, 112 employees and $6.7 billion in client assets. Portland, Oregon-based Rosenbaum Financial has $463 million in client assets. Upon completion of the deal, second-generation advisor Mark Rosenbaum will oversee Coldstream's Team Rosenbaum as team lead, and Managing Partner Kim Rosenberg will be a wealth planner for the team. “We are excited to take the next step in the evolution of our business by merging with Coldstream,” Rosenbaum said in a statement. “After meeting with numerous potential partners for the future, we were disenchanted with many who seemed solely focused on maximizing profits, a stark contrast to Kevin and his team, whose emphasis on delivering a great client experience and cultivating a strong internal culture was more in lockstep with our own beliefs.”

A barred advisor misrepresenting his employment and registration status swindled a military veterans' charity for $750,000 over a three-year span,

according

to federal prosecutors in Maryland. A grand jury indicted Brian McQuade, 70, on two counts of wire fraud charges. The Chevy Chase resident misappropriated the organization’s money toward restaurants, country club dues, luxury car payments, mortgages and other personal uses after telling the nonprofit that he was a licensed and registered advisor as well as an employee of an accounting firm where he hadn’t worked for at least three years, investigators say. The charges carry a maximum sentence of 20 years for each fraud count.A barred advisor misrepresenting his employment and registration status swindled a military veterans charity for $750,000 over a three-year span,

according

to federal prosecutors in Maryland. A grand jury indicted Brian McQuade, 70, on two counts of wire fraud charges. The Chevy Chase resident misappropriated the organization’s money toward restaurants, country club dues, luxury car payments, mortgages and other personal uses after telling the nonprofit that he was a licensed and registered advisor as well as an employee of an accounting firm where he hadn’t worked for at least three years, investigators say. The charges carry a maximum sentence of 20 years for each fraud count.

Financial advisors Stephanie Guerin, Kelly Hokanson and Staci Peterson of Kansas City, Missouri-based RIA The Planned Approach joined Focus Financial Partners firm Buckingham Strategic Wealth under a merger. Represented by consulting firm DeVoe & Company in the transaction, The Planned Approach has $265.8 million in assets under management with a client base of households with at least $2 million in investable assets. Buckingham, where AdvicePay and XY Planning Network co-founder Michael Kitces became head of planning strategy last October, has more than $23 billion in client assets. “We quickly saw the importance that the Buckingham organization places on culture and client relationships,” Hokanson said in a statement. “We’re confident that Buckingham will offer us more time and ways to deepen the comprehensive support we offer to our clients, including the strong bonds we build with high net worth female clients.”

Asset and wealth manager Northern Trust agreed to purchase an equity stake of unspecified size in Essentia Analytics, a behavioral finance consulting and software firm. Northern Trust will adapt Essentia’s data analytics and coaching into its Whole Office advisor desktop. “As asset managers and allocators seek to maximize alpha, it is crucial that they are able to identify behavioral biases and decision-making deficiencies and adjust their approach accordingly,” Essentia founder Clare Flynn Levy said in a statement. “We look forward to the opportunity to work with Northern Trust to bring enhanced productivity and investment performance to the front office of clients across the globe.”

Financial advisors Carrie Turcotte and Crystal Walker of NorthShore Financial Strategies left the Wells Fargo Advisors Financial Network to affiliate with LPL Financial and its Strategic Wealth Services channel. The Chattanooga, Tennessee-based practice, which managed $230 million in client assets with its prior firm, is the first formerly independent team to join LPL’s channel merging 1099 contractor status with a broader array of services from the corporate office than its traditional affiliation. “Not only will this take compliance management off our plates, but it will also allow us to provide an enhanced level of client care by providing additional time for us to focus on our top priority — our clients,” Turcotte said in a statement.

Financial advisor Nick Perego left PNC Investments for Raymond James, the firm announced on Wednesday. The Louisville, Kentucky, advisor previously managed $102 million in client assets and has been in the financial industry for 15 years. He previously worked at Wells Fargo and Merrill Lynch.

Former Wells Fargo advisor Alberto Sisso joined Raymond James in its Fort Lauderdale office, the firm announced. Sissio has 30 years of experience in the industry and previously managed $200 million in client assets. “What immediately stood out to me about Raymond James is the culture, as well as the ability to join a locally focused team backed by the home office right here in Florida,” said Sisso. “After many years in the industry, I also share the firm’s conservative approach to conducting business.”

Sanctuary Wealth announced a stake in the $2 billion multi-family office and advisor firm InnoVise Family Wealth Advisors. The Los Angeles-based practice will launch Sanctuary’s Global Family Office, which will be led by InnoVise's Brian Weiner. Michael Pagano also joined InnoVise as chief operating officer, Sanctuary announced in the same press release.

Under a collaboration between global asset manager Hartford Funds and sub-advisor Wellington Management, the firms have launched Hartford’s first-ever fixed income ETF focused on sustainability. The actively managed Hartford Sustainable Income ETF invests in multiple types of debt with a sustainability framework and measures its performance against the Bloomberg U.S. Aggregate Bond Index. “The launch of this actively managed ETF product further demonstrates our commitment to providing options that not only help investors seek to achieve their long-term investment goals, but also provide investors with the opportunity to invest in a product that uses a sustainable investing approach,” Hartford Chief Investment Officer Vernon Meyer said in a statement.

The board of the Financial Planning Association elected financial advisor James Lee of Saratoga Springs, New York-based Lee Investment Management as its president-elect for the next year. Following the one-year term as president-elect, he’ll serve as president for the succeeding year after incoming 2022 FPA President Dennis Moore. Lee has been an FPA member for more than 20 years and served on the board of its Northeastern New York chapter for seven. In addition, he was a founding member of the FPA Council of New York and is a former chair of FPA’s Legislative and Regulatory Issues Committee. “James Lee is among the most committed and dedicated individuals I have had the pleasure of working with throughout my career,” 2021 FPA President Skip Schweiss said in a statement. “I am honored to have the opportunity to work closely with James as we continue our work to elevate the profession and position FPA as a partner for CFP professionals.”

RBC Wealth Management added a team that managed $450 million in client assets with its prior firm, Wells Fargo Advisors, to its branch in Lincoln, Nebraska. Senior Vice Presidents Jerold Doell and Douglas Kuszak lead the team, which also includes associate financial advisor Gregory Yank and senior registered client associate Kelli Kruse and reports to RBC Kansas City Complex Director Mark Borcherding. “RBC Wealth Management has a strong reputation of financial stability and a focus on putting the needs of clients first,” Doell said in a statement. “The firm’s client-first culture and backing by a strong, global leader will provide the best of both worlds for our clients.”

In order to help financial advisors reflect on 2021 while setting goals for next year, consulting firm Advisor Growth Solutions and its founder, Jeffrey Czajka, have launched a new series of one-day workshops called the Annual Planning Retreat. The consulting firm launched by the former head of LPL Financial’s Independent Advisor Institute will hold its practice management workshop late next month and in early November in four locations: San Diego, New York, Charlotte, North Carolina and Austin, Texas. “During the Annual Planning Retreat, advisors will learn how to harness the principles of growth and apply them to any area of your business to break through the barriers that hold them back,” Czajka said in a press release. “Growth has a predictive formula that once understood and applied, unlocks your ability to achieve almost anything your mind can conceive.”

A federal jury

convicted

ex-Northwestern Mutual registered representative Sampson Pearson on charges of wire and tax fraud and aggravated identity theft after investigators said he defrauded at least 10 clients for $570,000 between 2004 and 2016. Sampson, a 44-year-old resident of Charlotte, North Carolina, allegedly submitted fake loan applications and requests for disbursements in the clients’ names to Northwestern Mutual. After receiving the money, Pearson used it for his own personal expenses and Ponzi-style payments to victims, according to federal prosecutors. In addition, he allegedly committed tax fraud by filing false returns between 2013 and 2016. FINRA barred Pearson in 2017, and at least 10 different clients received settlements after filing arbitration claims, according to BrokerCheck. His sentencing hearing hasn’t yet been scheduled.

J.P. Morgan Wealth Management added financial advisor Raymond Hayes and client associate Russell Moran to its New York City branch after they left Wells Fargo Advisors. They previously managed $300 million with Wells Fargo, and Hayes has three decades of experience in wealth management. The team now reports to New York Regional Director Cayman Wills. “As we continue to recruit top advisor talent to J.P. Morgan Wealth Management, we’re excited to welcome Ray,” Wills said in a statement. “We’re confident that clients will benefit from Ray’s decades of experience coupled with J.P. Morgan Wealth Management’s offerings.”

Financial planning company eMoney Advisor has added new educational content and features to Incentive, the company’s mobile financial wellness app. Topics include strategies for paying down debt, preparing for emergencies, common money mistakes, successful saving tips and risk tolerance. Clients can also connect their financial accounts to view top spending categories and learn where to save. Incentive is offered through financial advisors as a way to strengthen engagement, and clients can use the app to connect with their advisor if they have additional questions about their money.

Retirement plan participants with small balances often do not roll over retirement savings into new plans or other tax-advantaged vehicles after changing jobs, and employers can transfer balances of less than $5,000 to a Safe Harbor IRA where fees are higher, according to Vanguard research. To prevent so-called “retirement plan leakage,” Vanguard is working with Retirement Clearinghouse to introduce auto portability service, where an employee’s 401(k) savings account will automatically move from a former employer to an active account with a new employer.

Invesco, the fourth-largest manager of ETFs, will pay $4 billion in preferred shares and 81.9 million of common stock to add the primarily active manager to its offerings.

Invesco is the latest traditional asset manager to propose a digital asset ETF. The firm has partnered with Galaxy Digital Holdings, a blockchain and cryptocurrency firm with $2.1 billion in AUM, to put together a “suite of U.S.-listed, physically backed, digital asset ETFs.” The combination of the two companies will help investors “safely and prudently navigate this exciting new asset class to help meet their desired investment outcomes,” according to John Hoffman, Invesco’s head of Americas, ETFs and indexed strategies.

Riskalyze landed yet another enterprise partnership. Allianz Life is licensing out the risk analytics software for some of its product specialists and consultants to use in the field. Riskalyze can help evaluate how annuities can mitigate market risk and ascertain allocation recommendations, the company said. Riskalyze will also feature some of Allianz’s index variable annuity and fixed index annuity products in the Riskalyze Partner Store.