Ameriprise, Raymond James, LPL, plus new FINRA rules, elder fraud and mentorship for female advisors

December 10, 2021 2:32 PM

A former LPL and Lincoln Financial Group advisor got more than two years in federal prison for stealing money directly from the bank account of one of his elderly clients. Commonwealth Financial has launched a program that pairs 40 of its 400 female advisors with a dozen mentors. The Financial Planning Association has a new editor for its Journal of Financial Planning. And it’s time to register for a round of the CFP exams. There’s also news of advisors switching firms, along with mergers and acquisitions. Scroll through to find what you might have missed this week in financial planning news.

Financial advisor Brian Nydegger followed through on a move he and his late father Richard had been planning before Richard’s death earlier this year in May. The former RBC Wealth Management practice, which is based in Westhampton, New York, and managed about $420 million in client assets with its prior firm, went independent with LPL Financial’s Strategic Wealth Services under the name Point 32 Investment Partners. The practice includes director of client services Corrine Heaney and client services associate Sean Sullivan. In a statement, Nydegger said it had been “a true blessing” to work alongside his father for the past 25 years. “He was my mentor, my sounding board, and we never had one argument over the business,” Nydegger said. “It is an honor to carry on his legacy and fulfill his dream to truly take care of clients and prioritize their needs.”

The Financial Planning Association appointed advisor and editorial board member Preston Cherry of Concurrent Financial Planning as the practitioner editor of the organization’s Journal of Financial Planning, replacing outgoing volunteer Dan Moisand. In addition to running his practice, Cherry is a coach to fellow advisors with Carson Group Coaching and head of the personal financial planning program at the University of Wisconsin at Green Bay. He’s also the volunteer president-elect of the Financial Therapy Association, a member of the CFP Board’s Council on Education and a board member of the Association of African American Financial Advisors Foundation. “FPA and Journal of Financial Planning have served me greatly across my career and life journey. It is an honor and a pleasure to return the service to the profession,” Cherry said in a statement. “The body of knowledge in financial planning must continue to expand by elevating the existing knowledge by introducing and achieving diverse thought across topics, perspectives, technical and social demographic domains.”

The CFP Board has opened the registration for its CFP exams scheduled for March 8-15, 2022. The first cohort of tests

includes the “psychology of financial planning”

among eight “principal knowledge topics” covered by the assessment. CFP hopefuls must

register

for the March exams by Feb. 22, with discounted early registration through Jan. 19. Among other available resources on its website, the certifying organization has posted

a list

of frequently asked questions about the exam, a

practice test

and a

document

comparing the new topics to those covered under the prior version.

Private equity-backed RIA consolidator Wealth Enhancement Group made its 15th acquisition of the year, picking up Denver-based Cardan Capital Partners. The incoming RIA has $1 billion in client assets, raising the firm’s overall count to more than $54 billion. Advisors Ross Fox, Matt Papazian, Marti Awad and Sarah Keys led a team of 13 employees at the firm launched a half dozen years ago. Cardan is Wealth Enhancement’s first location in the Denver area. The transaction of an undisclosed amount closed on Dec. 1. “Our firm did a tremendous amount of due diligence before selecting to partner with Wealth Enhancement Group,” Keys said in a statement. “We interviewed some of the best independent firms in the U.S. and Canada and feel confident that Wealth Enhancement Group will help and support our ongoing efforts to provide clients with an environment that they can thrive and have confidence in.”

Boston-based Rinet Company joined Captrust Financial Advisors under the private equity-backed RIA consolidator’s eighth deal of the year, bringing 29 advisors and employees managing $2.2 billion in client assets. Advisors Brian Rivotto, Gary Savage and Rebecca Pouliot led the 47-year-old practice. “When we started exploring the next phase for RINET, we were seeking alignment on three core principles that have been our bedrock for nearly 50 years,” Rinet CEO Brian Rivotto said in a statement. “It became clear very early on in the process that CAPTRUST not only shared these views but had developed the scale to provide a level of client service that is unmatched in the industry.” With the deal of an undisclosed amount, Captrust now spans more than 1,000 employees in 60 offices with more than $85 billion in assets under management.

Independent wealth manager Commonwealth Financial Network launched its first dedicated mentorship program for women advisors. A dozen mentors worked with 40 protégés in the inaugural cohort, a six-month process revolving around small group “pods” of mentees with similar goals and backgrounds on topics such as career development, managing stress and work-life balance. Spark HR Consulting principal Sarah Mann facilitates the program on behalf of Commonwealth. The firm has about 400 female advisors in its total force of 2,000 across the firm. “This mentoring program and the new relationship with my mentor have helped boost my confidence and given me the support and guidance needed to take the appropriate steps in furthering my career as an advisor,” Jennifer Statler, a paraplanner with Scottsdale, Arizona-based Five Point Wealth Advisors, said in a statement. “There is so much energy from the first meeting, and I can’t wait to keep working with my group.”

Alex. Brown Raymond James Park Avenue Office

Financial advisors Jose Diaz, Veronica Cereceda, Robert Dunn and Astrid Rodriguez dropped Wells Fargo to join Alex. Brown, a division of Raymond James. The Miami-based team managed more than $1.7 billion in client assets with its prior firm and has relocated to a branch that has attracted 18 advisors with $3.3 billion in 2021. “Our decision to join Alex. Brown was based largely on the firm’s capacity to serve our sophisticated clientele, coupled with its welcoming corporate culture,” Diaz said in a statement.

RIA platform Advisory Services Network has passed $5 billion in client assets across its network of RIAs and unveiled the company’s first sponsorship of a professional athlete: PGA golfer David Skinns. The newcomer to the PGA Tour this year played in a variety of professional tours over nearly 20 years prior to making the field. “David never gave up, not on himself, not on his dreams, not on all the hard work he put into being the very best he could possibly be, and that’s exactly the kind of person we work with at ASN,” Advisory Services founder Tom Prescott said in a statement. “We love to work with the advisor who has spent his or her career building a business the way they want it built, never giving up on where they want to be or the type of person they want to be when they get there.”

FINRA fines and suspends former Academy Securities rep.

This week, FINRA announced the promotion of a key enforcement official and its board approved two rule proposals at its December meeting. One proposed rule now heading to the SEC for its consideration would make permanent the temporary service and filing guidelines for electronic submission in disciplinary proceedings the regulator adopted at the beginning of the pandemic. Another will be published in a regulatory notice asking for stakeholder comment on proposed amendments to the rules governing arbitration cases that would speed up the processing of claims involving parties who are at least 75 years old or seriously ill. In addition, the regulator appointed 24-year FINRA veteran Bill St. Louis its head of the national cause and financial crimes detection program, a role where he’s succeeding Head of Member Supervision Greg Ruppert and reporting to him. The unit St. Louis will lead effective Dec. 13 manages FINRA’s units investigating money laundering, fraud, cybersecurity and other areas. St. Louis previously served as the firm group leader in FINRA’s Member Supervision Division, along with prior tenures as regional director of the northeast and director of the New York office. “I am excited to lead such a talented team of professionals who are highly committed to protecting investors and strong, safe markets,” said St. Louis. “I look forward to taking on this new role to ensure FINRA is on the front lines fighting fraud and swiftly identifying and removing bad actors from the industry.”

Ameriprise hired former wirehouse manager Jay Hubbard to a new complex director position overseeing 70 advisors across five branches in the Chicagoland area. Hubbard, a 13-year industry veteran who left Merrill Lynch and had prior roles with Morgan Stanley and Wells Fargo, will lead the operations and recruiting efforts for the offices in downtown Chicago, Deerfield, Downers Grove, Lake Zurich, Orland Park and St. Charles. “I’m impressed with the way Ameriprise truly partners with advisors to help them achieve success as determined by the advisors and their team,” Hubbard said in a statement. “Leaders here clear the way for advisors to focus on what they do best: providing outstanding service and solid advice that helps clients feel confident about their financial futures.”

Raymond James & Associates added financial advisor Travis McIntosh to a branch in Sumter, South Carolina, where he previously managed $109 million in client assets with Truist Wealth. Cindy McGhee, a senior client service associate, made the transition alongside the 20-year veteran advisor. “Raymond James is client and advisor focused, the technology and reports are client-friendly and the support for the local branches is excellent,” McIntosh said in a statement.

Financial services advice and capital firm Emigrant Partners added a billion-dollar RIA in its 19th acquisition of a minority interest in firms spanning more than $85 billion in client assets. Emigrant, a subsidiary of New York Private Bank & Trust, invested in Dallas-based Beaird Harris Wealth Management. The incoming fee-only practice has almost $1.3 billion in client assets under Managing Partner Pat Beaird, Managing Director Steve Lugar and Chief Compliance Officer Clint Dunn. “Emigrant’s history, collaborative culture and embrace of employee-owned, founder-led firms made it an excellent fit to realize our vision for the future,” Beaird said in a statement.

Father-daughter team Frank and Leigh Voli of Wilmington, North Carolina-based V&V Financial left RBC Wealth Management to go independent with Commonwealth Financial Network. The duo managed $120 million in client assets with their prior firm. The elder Voli got his start in the industry in 1990 with Shearson Lehman Hutton and spent time with Citigroup before moving to RBC in 2009. His daughter, Leigh, broke into the industry earlier this year. “We see a paradigm shift occurring in our industry, both among clients and advisors,” Frank Voli said in a statement. “This move to Commonwealth allows us to further structure our business model to encompass the needs specific to our clients.”

MAI Capital Management made its sixth acquisition of the year, purchasing Deerfield, Illinois-based Hochman Cole Investment Advisors. Advisors Joel Hochman and Philip Cole launched the Chicago-area firm in 2006, and they’ll be joined in the move by Partner Michael Williams and their entire staff. The practice managed $495 million with their prior firm, Cetera Financial Specialists. “As we look to our future, we remain committed to providing superior services and customized planning for our clients,” Hochman and Cole said in a statement. “Aligning with MAI will allow us to optimize these efforts and enhance our relationships with current and future clients.” MAI Capital, which was acquired in September by financial services distribution company Galway Holdings, has $12.5 billion in client assets across the firm.

Former LPL Financial and Lincoln Financial Group advisor Matthew O. Clason received a sentence of 2 ½ years in federal prison and two years of supervised release after pleading guilty to one count of wire fraud. Clason stole more than $600,000 from a 73-year-old client by opening a joint bank account with the victim and withdrawing the money for his personal use, according to investigators in the U.S. Attorney’s Office in Connecticut. Clason, a 40-year-old resident of Cheshire, must report to prison on Feb. 28.

Canadian asset manager and RIA consolidator CI Financial secured an agreement to acquire RegentAtlantic Capital, a New York and Morristown, New Jersey-based RIA with $6 billion in client assets. Under the deal of an undisclosed amount, the partners in RegentAtlantic will become equity partners in CI’s U.S. wealth management business. In addition, RegentAtlantic investor Fiduciary Network exchanged convertible debt notes in the incoming RIA for non-convertible debt in CI with a term of three years. The 39-year-old firm led by CEO George Stapleton will be CI’s third office in New York and push its U.S. wealth business above $100 billion in client assets about two years after entering the market. “There is an ever-growing need for quality financial advice, and that presents an opportunity for firms like ours,” Stapleton said in a statement. “CI Private Wealth will be the ideal partner for our team as we embark on the next phase of our growth and development.”

Financial advisor Harry Sherdil and associate advisor Nestor Belmonte launched Humanity Wealth Advisors in Newark and San Ramon, California, under an affiliation with LPL Financial and The Financial Services Network office of supervisory jurisdiction. The team left Wells Fargo Advisors, where it managed about $250 million in client assets. Sherdil, who immigrated to the U.S. from India in 1990, has set a goal of helping 100 young people find careers in financial services. “I come from a humble background,” Sherdil said. “My mother had to sell her jewelry to put me through school, but it was that education that helped me get to this great nation. Now I am blessed to have my American dream come true. I’ve made it, and now my goal is to help others.”

Private equity-backed RIA Robertson Stephens has boosted its assets under management by $1 billion in roughly the past six weeks, in part with the addition of 30-year industry veteran advisor Karen McClintock. The Pasadena, California-based advisor was previously with an RIA called LSIA, where she managed more than $160 million in client assets. Her practice marks the fifth to come to the firm in the past three months, pushing the total amount of client assets at Robertson Stephens to more than $3.6 billion. PE firm Long Arc Capital invested in the San Francisco-based RIA in 2018. “By joining, I am able to better service my clients by offering comprehensive wealth planning, rigorous investment management and innovative technology that will better position them in accomplishing their wealth needs and goals,” McClintock said in a statement.

Advisor Group’s Triad Advisors and its multicustodial corporate RIA, Triad Hybrid Solutions, picked up two former Wells Fargo Advisors representatives who managed a combined $164 million in client assets with their prior firm. Financial advisors Wade Roberts, who’s based in Woodstock, Georgia, and John Hachey, who operates his practice from Kennesaw, Georgia, each have at least 19 years of industry experience prior to going independent. "I had been searching for the most fitting partners to help me take the next step in the growth and development of my business, and I can say wholeheartedly that I have found those partners in Advisor Group and Triad,” Roberts said in a statement. “Working with them will give me the chance to explore true independence while still leveraging the support, technology and services of a world-class wealth management organization."

Mariner Wealth Advisors made its 11th deal since July, acquiring New Tripoli, Pennsylvania-based practice Sivel Capital Management for an undisclosed amount on Nov. 30. The incoming firm manages $118 million in client assets under advisement, and the addition makes 59 offices nationwide for the private equity-backed RIA consolidator. “We’re very excited about the opportunity to join Mariner Wealth Advisors,” Sivel Capital founder Jay Sivel said in a statement. “We feel a strong connection to their client-first philosophy and know this transition will enhance the services we are able to offer our clients, including expanding our in-house tax strategy.”

Raymond James Financial Services added three teams in Texas from Wells Fargo and LPL Financial who managed a combined $567 million in client assets with their prior firms. Financial advisors Steve Jumper, William Pettit, Tim Wilson and Joseph Logsdon report to Kirk Bell, the division director for the independent broker-dealer’s central region. “Raymond James continues to offer advisors a distinct experience that embraces flexibility and choice for them and their clients, backed by the resources they need to innovate and grow,” Bell said in a statement. “We’re pleased to continue expanding our presence in Texas with the addition of these exceptional teams.”

Bluespring Wealth Partners, the RIA M&A arm of private equity-backed wealth manager Kestra Holdings, has acquired fee-only practice Capital Planning Advisors. Partners Jim Wilson, Larry Hansen, Michael Sollazzo and Jason Bell lead the Roseville and Walnut Creek, California-based practice, which manages $1.1 billion in client assets. It’s the second practice that Bluespring has acquired in California this year and its fifth overall. “We’ve built a strong reputation in Northern California, and aligning with Bluespring Wealth Partners will empower us with the resources to perpetuate our legacy and deepen the service we provide to clients,” Wilson said in a statement.

Vestwell is expanding its services and products for state-run retirement programs. Vestwell State Savings, also known as Sumday, will power millions of plans in Oregon, Connecticut and Maryland. Vestwell said in November that it would acquire Sumday, a subsidiary of The Bank of New York Mellon, that manages and administers 529 college savings, 529A ABLE and state-sponsored savings programs. In Oregon, Vestwell has signed up more than 6,200 and processed more than 9,600 contributions totaling $142 million. The fintech company plans to roll out similar programs in Connecticut and Maryland next year.