Wealth Briefs: FPA externships open, share-class case settled, CFP pass rates, a succession matchmaking service

May 1, 2022 6:57 AM

A lot happens each week in the world of wealth management. Scroll down our cardshow to see the bits of news you might have otherwise missed.

Racial equity audit proposal gets 36% approval at Wells Fargo shareholders vote

The Service Employees International Union’s racial equity audit proposal garnered a “yes” from more than a third of shareholders at the annual meeting of Wells Fargo. While the vote is non-binding and didn’t receive majority approval, the returns demonstrate increasing levels of support for proposals to urge major publicly traded firms to make an accounting of their impact on racial inequality. “Shareholders are demanding more than just empty promises and statements of solidarity,” Renaye Manley, deputy director of strategic initiatives at the Service Employees International Union, said in a statement. “They want corporate entities like Wells Fargo to examine themselves and see where their practices and policies may advance injustice. Working people want their retirement savings invested in companies that share their values, not those that unnecessarily expose them to higher risk due to inequitable practices.”

FPA opens registration for FPA Virtual Externship

Financial Planning Association, in partnership with eMoney Advisor, Kaplan’s College for Financial Planning, the Charles Schwab Foundation and Schwab Advisor Services, has opened registration for the FPA Virtual Externship in the third year of the virtual training program. The eight-week program runs from June 6 through July 29 featuring classes led by more than two dozen experts introducing students into the planning profession. Last year’s program drew almost 500 participants, and the registration deadline is May 27. The cost is $199 for FPA members. “The externship is one of the best ways FPA members, students and career changers can see financial planning in action,” the head of the program, Hannah Moore, said in a statement. “There are dozens of different career options, and externs can see inside real-life client meetings and learn from some of the best in the profession.”

Barred financial advisor charged with embezzling $313K from client

Adam G. Belardino, a 37-year-old former financial advisor with MassMutual’s MML Investors Services and MetLife’s MSI Financial Services, faces a wire fraud charge after federal prosecutors in New York alleged he stole $313,000 from a client of his firm, the Maddox Group. In August 2019, Belardino convinced a 64-year-old resident of New Rochelle, New York, to liquidate part of her holdings for other investments then used the money for his own personal and business expenses, according to investigators. “Adam Belardino abused the trust his client placed in him by stealing more than $313,000 the client gave him to be invested,” U.S. Attorney Damian Williams said in a statement. “Clients like the victim in this case need to be able to entrust their money to financial advisors with confidence that the money will be invested in a manner that is appropriate for them.”

RIA settles SEC share-class case for $764K

Highpoint Advisor Group, a Downers Grove, Illinois-based RIA, agreed to pay $764,737 in disgorgement, interest and a civil penalty to settle an SEC case alleging it didn’t adequately disclose its conflicts of interests relating to recommendations of mutual funds. The case adds to roughly 100 similar cases in recent years. Highpoint Advisor, which didn’t admit or deny the allegations as part of the settlement, had already taken remedial steps beginning in 2018, according to the SEC.

Integration of Bonsai boosts FIDx’s annuity solutions

A strategic partnership for the integration of Bonsai on the Fiduciary Exchange will enable RIAs and hybrid advisors to gain access to more annuities as part of software technology mapping out a client’s balance sheet. “At FIDx, we are in complete philosophical alignment with Bonsai’s focus on bringing defined, protected outcomes to the RIA marketplace. Our relationship furthers our mission to meet more advisors where and how they do business,” CEO Rich Romano said in a statement. “We continue to join forces with innovative partners to connect the insurance carriers on our platform with a wider array of advisors and distributors across the country—enabling more investors and their families to achieve financial wellness.”

CFP exam pass rate was 65% in March testing

In the first round of CFP certification testing that included the psychology of financial planning as one of the main topics, 2,705 candidates received passing grades in 65% of the examinations administered between March 8 and March 15. Also this week, the CFP Board released a six-part book called “The Psychology of Financial Planning” for further reading on the topic. With the CFP Board offering the exams three times a year, the organization has opened registration for the next testing period between July 12 and July 19. Those registering by May 10 are eligible for a discount, and the deadline is June 21. “The feedback received from our post-exam survey demonstrates the continued relevance of CFP certification among financial planners and aspiring financial planners,” CFP Board CEO Kevin Keller said in a statement. “CFP Board’s goal is to advance and grow the financial planning profession by providing the right knowledge, resources and career pathways, so we are pleased to hear the vast majority of exam registrants feel appropriately supported by our resources and communication.”

RBC custodial arm launches RBC Nexus after 3-year ‘transformation journey’

RBC Clearing and Custody launched a new unified advisor desktop program called RBC Nexus that will enable financial advisors from independent brokerages and RIAs to access a secure entry point for all client account management needs. “RBC Nexus is the culmination of a three-year technology transformation journey that will reinvent the advisor and client experience for firms that clear and custody through RBC C&C,” Chief Technology Officer Noel Stave said in a statement. “We’ve invested more in technology during the past three years than ever in our 40 years in the business. The firms and their clients we serve can now reap the benefits of these investments. Through our cutting-edge new platform, coupled with great people delivering excellent service, we are elevating the overall advisor experience.”

401(k) trading and management tool integrates with SS&C network

Pontera, a fintech firm offering 401(k) trading and management tools to advisors that formerly went by the name FeeX, has integrated with SS&C’s Advent Custodian Network in a strategic partnership. “401(k), 403(b), and other employer-sponsored retirement accounts are becoming the largest savings vehicles for more and more Americans,” Pontera Chief Business Officer Dave Goldman said in a statement. “Because these assets are held off the financial advisor’s custody platform, or “held away,” monitoring them has been challenging historically, limiting the ability of financial advisors to give clients the help they need. Our relationship with SS&C solves this problem for advisors using their platforms. They are able to securely trade their clients’ held away accounts while seamlessly incorporating them into reporting, billing and planning workflows like never before.”

AssetMark launches ‘values-driven investing’ program

Wealth management technology provider AssetMark launched its new Values-Driven Investing program with portfolio models created through ESG criteria and managed by firms like BlackRock, AllianceBernstein and Nuveen. The firm also released its first ever report discussing the rise of ESG data and how advisors and clients can tap into it. “We have long been dedicated to having a positive impact — in the lives of our advisors and their clients, in the communities in which we live and work and in the world more broadly,” AssetMark CEO Natalie Wolfsen said in a statement. “I’m proud of the progress AssetMark is making in its commitment to transparency and responsible corporate citizenship, as well as enabling our advisors to meet the growing demand for ESG-focused investment strategies.”

Alternative investing research firm launches service linking advisors to data

Recently launched independent alternative investment research firm AltsAxis launched its Axis platform to connect financial advisors to standardized data about products in a searchable database. “We have built the leading-edge fintech platform to unify the historically fragmented alternative investment space on one intuitive, transparent digital community accessible on mobile devices,” AltsAxis founder Mark Salameh said in a statement. “Our ecosystem simplifies — and optimizes — the sourcing of alternative strategies for family offices, institutional investors and wealth managers. But we also go a step further by creating opportunities for alternative asset managers, institutional investors allocating to alts and their strategic partners to engage and find out more about one another, so they can make well-informed decisions for meeting their goals and facilitating growth.”

Prospera launches matchmaking program for advisor succession

Independent wealth manager Prospera Financial Services launched the Advisor Practice Exchange Program, or APEX, to connect retiring advisors with younger peers in a bid to simplify the difficult succession planning process. “We developed APEX to empower our advisors looking to buy or sell a practice, or find an eventual successor, to do so within the Prospera family,” Prospera CEO Tim Edwards said in a statement. “By providing advisors access to in-house experts and resources, we make what can be a complex and emotionally draining undertaking easier for all involved. An internal transition creates an improved experience for the end client, translating into higher retention and increased business value. Keeping assets here at Prospera also allows us to continue investing in the support and services our advisors expect and deserve.”