Morgan Stanley, Raymond James, RBC; plus educating football players and client identity theft

February 4, 2022 1:10 PM

Morgan Stanley Global Sports & Entertainment is holding a financial education session for college football players participating in this year’s Senior Bowl. Lincoln Financial Network’s African American Financial Professionals Network launched a strategic partnership with Changing How Individuals Prosper (CHIP) Professionals. A barred former broker faces charges after allegedly posing as his clients. Advisors were on the move, and executives changed roles.

Scroll through to find what you might have missed this week in financial planning news.

Vanguard added Ariel Investments to two other money managers acting as sub-advisors on the Vanguard Explorer Value Fund, at a 10% initial allocation out of the product’s $1.2 billion in assets. Vanguard has divided the rest of the fund among the two other firms, Cardinal Capital Management and Frontier Capital Management. A 39-year-old firm that was the first Black-owned mutual fund company when founder John Rogers launched Ariel as a small- and mid-cap value manager, Ariel takes an approach that’s “rooted in an active, yet patient investment philosophy focused on uncovering mispriced companies whose true value will be realized over time,” according to a statement from Vanguard. “Vanguard believes this approach aligns with the fund’s mandate of providing investors with long-term capital appreciation through investing in small- and midsized U.S. companies considered to be undervalued."

This weekend’s Reese’s Senior Bowl features top college football players who are graduating out of their eligibility this year and trying to make it in the NFL or another professional league. Morgan Stanley Global Sports & Entertainment is holding a financial education session for all of the players, with a special guest in Atlanta Falcons linebacker, Wharton School of Business professor and financial literacy advocate Brandon Copeland. “Our team is proud and excited to continue working closely with our partners at the Reese’s Senior Bowl for the eighth consecutive year to bring financial education and expertise to the event,” Sandra Richards, the head of Morgan Stanley GSE, said in a statement. “Navigating the transition from college to the professional ranks can be an exhilarating yet stressful time for athletes, and so we relish the opportunity to support the players and their families in this journey each year, helping them prepare for the unique and complex financial situations that can come with pursuing a professional sports career.”

Private equity-backed wealth manager NewEdge Wealth recruited an 11-person advisory team that managed more than $3 billion in client assets and generated $15 million in annual revenue with their prior firm, UBS. Financial advisors Ghislain Gouraige, Jared Kaplan, Claudio Ravinet, Michael Weinberg and Michelangelo Dooley lead the Coral Gables, Florida-based team. They’re using NewEdge Wealth as their RIA while affiliated with its brokerage, NewEdge Securities, as well. “There is an incredible synergy between what this phenomenal team does for clients and the platform we are building at NewEdge Wealth,” NewEdge CEO Rob Sechan said in a statement. “And I say building, because we’re constantly innovating to provide our advisors with the edge they need to best serve the unique needs and goals of the ultrahigh net worth. This team couldn’t be a better fit for our growing organization.”

A former Truist team with more than $1 billion in client assets dropped the bank to join the Richmond, Virginia-based branch of RBC Wealth Management. The team consists of: financial advisors Martin Miller, Bowlman “Tripp” Bowles, Matthew Horn, Alex Maffett and Stephen Tucci along with senior client associate John Hamilton, registered client associate Jessica Holmes and client associate Matthew Allen. “RBC Wealth Management’s culture is supportive and gives us the freedom to focus our efforts on what we do best — helping our clients,” Miller said in a statement. “We feel the firm’s integrated technology platform and extensive resources will enable us to provide an elevated service experience for our clients.”

Lincoln Financial Network’s African American Financial Professionals Network launched a strategic partnership with Changing How Individuals Prosper (CHIP) Professionals. As the first corporate sponsor of the online service connecting Black and Latino financial professionals and prospective clients, the company network started by Lincoln last year will gain access to CHIP’s platform. The partnership “is a powerful combination of experienced financial professionals who have a deep understanding of our clientele and their needs, coupled with CHIP’s leading technology platform,” CHIP CEO Dana Wilson said in a statement. “This will open doors for countless Americans to better their financial futures and aligns with our mission to spotlight financial professionals of color.”

Cetera Financial Group’s First Allied Securities recruited Eric Wolf to join the Bingham Farms, Michigan-based affiliated practice Selik Wealth Management. Wolf managed $100 million in client assets with his prior brokerage firm, Valic Financial Advisors. Cetera added nearly $50 billion in client assets to the firm in 2021 through recruiting moves and the acquisition of certain assets from Voya Financial Advisors.

Portfolio management tools and trading software firm Vestmark appointed Agnes Hong to be its chief investment officer and head of advisory services for the firm’s RIA, Vestmark Advisory Solutions. Hong had tenures with Vanguard and Schwab over her more than 20 years of experience before joining Wakefield, Massachusetts-based Vestmark, where she now reports to CEO Mike Blundin. In the position, Hong will oversee new services around direct indexing, ESG criteria, tax strategies in succession deals, portfolio models and the firm’s fund marketplace. “Vestmark is uniquely positioned to provide personalized portfolios and customized tax management at scale, combining deep investment experience with innovative, scalable and robust technology,” Hong said in a statement. “I look forward to being part of its next phase of growth and evolution.”

Financial advisors Thomas Montz, Amanda Montz and Nathan Novotny left BBVA Compass Investment Solutions to affiliate with Raymond James Financial Institutions Division as their brokerage and SmartBank Investment Services as their enterprise. The team managed more than $350 million in client assets with their prior firm, and they’re opening a new branch of SmartBank in Mobile, Alabama. “I’m confident that this transition will allow us to elevate the experience of current clients, while innovating and growing through the robust wealth management strategies and technology available to us at Raymond James,” Montz said in a statement.

A newly launched firm called CJPA Global Advisors aims to become a leading global consulting, research and advisory services firm. Led by 25-year veteran investment and foreign affairs specialist Earl Carr, the firm provides training and workshops on financial literacy and racial justice investing for corporations, governments and nonprofits; advisory services for companies and governments interested in conducting business in China and nearby countries; and deep research on topics that include semiconductors, 5G and cross-border remittances. Carr is the author of “From Trump to Biden and Beyond: Reimagining US-China Relations.” In a statement about the Jan. 28 launch of the firm, Carr said “An increasingly interconnected global community requires organizations to bridge cultures through integrity, respect and an unwavering commitment to their customers.”

A barred broker formerly with LPL Financial, SII Investments and Royal Alliance Associates, among other firms over the course of his 34-year career, faces charges of money laundering and investment advisor fraud after a grand jury indicted him on new charges. Paul R. McGonigle, a 67-year-old former advisor from the Boston area, had been facing three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft under his original charges in June 2021. McGonigle posed as his older clients in calls with annuity issuers requesting unauthorized withdrawals, which he then steered into his own personal and business expenses, according to prosecutors in the Boston U.S. Attorney’s Office.

Private equity-backed wealth manager Advisor Group’s SagePoint Financial picked up a quartet of advisors who respectively left Voya Financial Advisors, Morgan Stanley and Mutual Advisors with a combined $231.5 million. The advisors are: Youngstown, Ohio-based Kelcie Schiraldi; Vestal, New York-based Jonathan Macko; Milwaukee-based Nick Hunzinger; and Fond du Lac, Wisconsin-based Todd Lowe. “We are delighted to bring aboard such talented financial advisors with such incredible backgrounds and experience,” Desireé Sii, president and CEO of SagePoint said in a statement. “At SagePoint Financial, we take pride in being able to fully support independent professionals through a range of affiliation models.”

Kestra Financial, an independent wealth manager owned by Warburg Pincus-backed Kestra Holdings, hired ex-Silicon Valley Bank Managing Director Jennifer “Jen” Hollers to be its head of financial planning. In the role, Hollers will report to Head of Wealth Management John Amore and lead the wealth manager’s strategy around holistic advice and improved productivity, among other areas. “Kestra is positioned to achieve exponential growth in the near future and the team is committed to developing their financial planning capabilities, which I was really attracted to,” Hollers said in a statement. “I have the exciting opportunity to build a unique platform for Kestra Financial professionals from the ground up and I’m eager to help elevate the Kestra experience.”

Nearly 500 U.S. financial advisors and advisory employees shared their thoughts in November on current industry trends as part of a survey by global fintech firm Broadridge Financial Solutions and independent brokerage trade and advocacy group Financial Services Institute. At least 83% of the advisors said that better technology tools would help them add more clients to the practice. Almost two-thirds reported that more clients are asking about cryptocurrency investments and one-third said that more clients have been asking them about ESG criteria. More than three quarters of the group said they use LinkedIn, while just over two-thirds said they’re on Facebook. "This joint study with FSI highlights the growth opportunities for financial advisors and the heightened role technology tools play in enabling advisors to provide a better service experience, foster deeper relationships and reach new constituencies," Broadridge President Chris Perry said in a statement. "Advisors are taking advantage of this wave of digital transformation to provide investment ideas, offer financial literacy tools, discuss ESG trends and connect with clients and their families in new ways."

Lafayette, Louisiana-based 4th Quarter Wealth Management dropped LPL Financial to affiliate with Commonwealth Financial Network. Advisor Mike Hebert and client relationship manager Aimeé Hebert, a husband-wife team, managed $110 million in client assets with their prior firm. “We’re not like other larger firms,” Mike Hebert said in a statement. “We make house calls — we’ve built strong relationships with our clients and strive to be as accessible as possible for them. Commonwealth is as unique as we are. And with the robust income planning tools they provide, we can give our families even more in-depth financial preparation.”

Bluespring Wealth Partners, an RIA M&A arm of private equity-backed wealth manager Kestra Holdings, acquired a 30-year-old practice with 16 registered representatives and $950 million in client assets. Security Financial Management, which has three offices in Florida and an additional one in Minnesota under the leadership of co-founders Dave Allen and Frank Lovaglio, had been affiliated with Concourse Financial Group Securities and its predecessor, ProEquities, for 27 years prior to the deal. “We are partnering with Bluespring Wealth Partners because we are ready for an exciting new chapter, which will enable Dave and I to focus on the things we enjoy most ― working with clients and building the business,” Lovaglio said in a statement. Bluespring has already completed three deals in 2022 after five acquisitions last year.

Private equity-backed RIA consolidator Hightower made an investment in Los Angeles-based Grant Tani Barash & Altman, a business management and family office services firm that will give the acquiring firm’s advisors access to the resources. The 30-year-old firm has 80 employees, and the deal enables Grant Tani Barash to use Hightower’s administrative services and technology. "We were impressed with Hightower's focus on the client experience, and look forward to collaborating with the Hightower team to enhance our resources to serve clients with growing and multifaceted needs," Principal Warren Grant said in a statement.

Aaron Wealth Advisors, an RIA that uses Dynasty Financial Partners as its platform, launched its first West Coast office in Newport Beach, California and added financial advisor Alexander Fedynsky to the firm. Fedynsky managed $250 million in client assets with his prior firm, Goldman Sachs. “After extensive research, I’ve learned the independent wealth model empowers advisors to deliver clients a more customized approach and comprehensive offering,” Fedynsky said in a statement. “Clients with significant wealth need a level of service that goes beyond the constraints of traditional firms and Aaron Wealth has built the platform to meet those needs.”

KONSKIE, POLAND - MAY 18, 2018: AARP (American Association of Re

At least 115 banks, credit unions and wealth management practices earned a seal from AARP for participating in the 38 million-member organization’s BankSafe program aimed at training frontline employees to detect and report suspected financial exploitation. The organization recognized firms that completed training among 80% of their frontline staff, had positive Better Business Bureau ratings and limited legal and regulatory activity. The companies prevented an estimated $110 million in theft from older adults, according to a study cited by AARP. “These financial organizations provide a critical line of defense to protect the life savings of their older customers, members and clients,” said Jilenne Gunther, the national director of AARP’s BankSafe Initiative. “Access to employee education, intervention tools, and trainings like BankSafe is an important resource for protecting older adults and all consumers from financial exploitation.”

River Wealth Advisors, a fee-only RIA based in Central Pennsylvania managing $1 billion in client assets, received a minority growth investment from Merchant Investment Management in September, the firms announced publicly for the first time this month. CEO Edward O’Gorman and chief client officer Rebecca Stevenson McClure lead the practice. “We have seen other firms in our region give up their independence through roll-up mergers,” O’Gorman said in a statement. “We saw an opportunity with Merchant to uphold our promise to our clients and our team members by maintaining majority ownership and day-to-day operational control at the local level.”

Father-son financial advisor duo Steve and Jeremy Friedman left Raymond James to affiliate with LPL Financial as their brokerage and Omaha, Nebraska-based Silverleaf Wealth Management as their hybrid RIA and office of supervisory jurisdiction. Jeremy Friedman has taken a lead role in the practice since 2014, but the pair has more than 60 years of combined experience. “Ever since I was a child, it’s been my dream to own my life’s work — and this move to Silverleaf, accompanied by the backing of LPL, will allow me to do exactly that,” Jeremy Friedman said in a statement. “LPL offers the flexibility to run my business the way I want to and serve our clients’ comprehensive financial needs.”

Private wealth management brokerage, investment bank and asset manager William Blair promoted Managing Director Beth Satterfield to be its chief operating officer, a new position at the Chicago-based firm. The 30-year industry veteran joined William Blair in 2015 to lead the market development team in the firm’s investment bank after prior roles across the financial services over her career. “I have been fortunate to experience our tremendous global expansion and I am excited to take the role of COO to focus on empowering the organization to even greater collaboration and innovation across every part of our business,” Satterfield said in a statement. “Our ability to deliver innovative solutions and outstanding outcomes for clients is fueled by the talent, creativity, and intellectual rigor of our people and our uniquely collaborative culture.”

One of the largest hybrid RIAs and offices of supervisory jurisdiction with LPL Financial, the Merchant Investment Management-backed Private Advisor Group, added a record $3.3 billion in assets under management through recruiting in 2021, according to the Morristown, New Jersey-based firm. The firm has more than 700 advisors managing 115,000 investment accounts. “We believe these results are confirmation of our trajectory that further strengthens our position for continued growth both organically and through strategic acquisitions.” Head of Advisor Growth Frank Smith said in a statement. “Our new head of business development, Verne Marble, has contributed to this momentum by elevating our approach to business development and introducing an improved experience for prospective advisors.”

Fidelity Institutional announced a significant update to its technology for financial advisors, including a refreshed WealthscapeInvestorSM mobile app; updates to the Integration Xchange, which provides access to third-party technology; and a new product called the Digital Empowerment Tool, which will give firms an assessment of how well they are leveraging technology. Fidelity also introduced Wealthscape Analytics to help advisors track key business metrics and grow their businesses. Other updates include a customizable Wealthscape homepage, improvements to digital onboarding and a new virtual assistant.

AssetMark, a turnkey asset management company, launched two new pieces of technology for financial advisors this week. On Monday, AssetMark announced WealthBuilder Prospector, a new tool that lets advisors send prospective clients through a digital fact-finding process via a link on their website, in emails or on social media. The company followed on Thursday with Marketing Advantage, an all-in-one marketing platform for financial advisors to build relationships and grow their books of business. Marketing Advantage includes a library of client-facing and compliance-friendly content, and provides resources for marketing best practices.

Michael Ouellette joined Kelleher Financial Advisors (KFA) and Starboard Advisors — a division of KFA based in Portland, Maine — as president of Starboard. Bart Weisenfluh, the founder of Starboard Advisors, became its CEO. The firm said that Weisenfluh will maintain all of his client relationships while working with Ouellette to enhance client experiences. KFA is a wealth management firm that serves high net worth families in New England. It was founded in 1990 by Wall Street investor and entrepreneur Denis Kelleher as an offshoot of his brokerage business, Wall Street Access (WSA), and is wholly owned by WSA.