Stifel, RBC, Raymond James; plus Deutsche Bank’s $2M fine, and CFP Board’s new roadmap

March 13, 2022 9:07 PM

Deutsche Bank Securities is paying a $2 million FINRA fine over unnecessary delays and higher costs. Advisor Websites launched AccessAble, a tool that financial advisors can use to improve website access for users who have disabilities in vision, motor skills and cognition. And the CFP Board issued guidance for planning practices to navigate industry designations and ways to engage with the certification organization.

You’ll find that info, as well as news about advisors moving to new firms, mergers and acquisitions and more by scrolling down.

LPL OSJ Gateway Financial Partners acquires $1.3B RIA

Two large LPL offices of supervisory jurisdiction have grown even larger, after Glastonbury, Connecticut-based Gateway Financial Partners acquired Appleton, Wisconsin-based Advisors’ Pride. The combined firm spans 170 advisors, 95 support team members, $4 billion in assets under management and $3.2 billion in brokerage assets. Advisors’ Pride had $1.3 billion in AUM prior to the deal, and its president, Eric Hall, is now president of the combined firm. He reports to Gateway’s founder and chief visionary officer, David Wood. “Our team is committed to helping our advisors remain independent,” says Hall. “We are assisting in driving growth by supporting business operations through an enhanced value proposition.”

Research firm launches Gender Lens Scorecard

Seattle-based Parallelle Finance, a research and advocacy firm, created a tool with four criteria measuring gender-lens investment funds based on workforce representation, performance and ESG criteria. The firm calls the research tool the Gender Lens Scorecard. For the first quarter the proprietary tool measured, which was the last quarter of 2021, the top-ranked funds were: the Desjardins SocieTerra Diversity Fund, the Nordea 1 - Global Gender Diversity Fund, the Pax Ellevate Global Women’s Leadership Fund (investor class), the Mackenzie Global Women’s Leadership ETF and the UBS Global Gender Equality UCITS ETF. “The Scorecard will allow investors the opportunity to identify the gender lens funds leading the way on pushing for greater corporate gender equality,” Parallelle co-founder Marypat Smucker said in a statement. “With our hands-on approach, the Scorecard accurately depicts a fund’s commitment to investing with a gender lens.”

iCapital secures tech and distribution agreement with $266B fund company

The TCW Group, a global asset manager with $266 billion in client assets, reached an enterprise agreement with fintech firm iCapital for software technology supporting more efficient access to alternative investments. “We are excited by the partnership with iCapital, enabling expanded access to TCW’s growing slate of alternative investment products to a broader investor base through the financial intermediary community,” TCW Head of Retail Marketing Alex McCulloch said in a statement. “We expect TCW’s first offering through the iCapital technology to be in alternative credit, an area in which TCW has long-tenured experience and significant capabilities.” In another statement, Lawrence Calcano, CEO of iCapital, described the enterprise deal as a method of “creating opportunities for wealth advisors and their clients to efficiently access institutional-quality alternative investments.”

CFP Board releases guides for planning, engaging with organization

The CFP Board issued a roadmap for planning practices on the topic of industry designations and a resource guide on how to engage with the certification organization. “CFP Board is committed to helping firms grow their workforce to increase the access Americans have to competent and ethical financial planning,” CEO Kevin Keller said in a statement. “In creating these resources, CFP Board aims to help firms equip advisors with the skills and education they need to meet clients’ changing needs.”

Raymond James signs four advisors with $470M

Financial advisors John Clower and Reed Grant left Wells Fargo Advisors to join Raymond James & Associates at Cottonwood Heights and Park City, Utah-based Wasatch Capital Management. Clower and Reed managed a combined $250 million in client assets in separate practices with their prior firm. “What I love most is the feeling of working at an agile, fast-growing small business, with direct access to leadership while backed by the expanded tools of a powerhouse firm,” Clower said in a statement. In another move, advisors James and Christopher Domgard of Lincoln, Nebraska-based Capitol Private Wealth left RBC Wealth Management for Raymond James Financial Services. The team managed $220 million in client assets with its prior firm. “Our practice has evolved over the years and this affiliation with Raymond James will provide us with the extensive suite of investment research, financial solutions and cutting-edge technology we need to expand our services and benefit our clients,” Christopher Domgard said in a statement.

LPL adds teams to breakaway and employee channels

LPL Financial picked up two different teams from wirehouse rival Wells Fargo Advisors to its respective channels catering to breakaway teams and employee advisors. Richard DeYoung and Jessica Boehm launched Highland Wealth Partners with LPL Strategic Wealth Services after leaving the wirehouse where The Woodlands, Texas-based practice managed $280 million in client assets. “After careful research, we selected LPL Financial because of its deep commitment to supporting our firm, and in turn, our clients,” DeYoung said in a statement. “It was important for us to be with a partner that prioritized our clients’ needs and interests above everything else. In the other move, financial advisors Blake and Drew Turner launched Atlanta-based Turner and Turner Wealth Management of LPL Financial. The 18-year-old practice led by the brothers managed $210 million in client assets with their prior firm. “We entered into this move to LPL through thoughtful consideration and due diligence, as our relationship with our clients is paramount,” Drew Turner said in a statement. “With LPL’s innovative technology, robust digital platforms and investment opportunities, we are confident that this is the right move at the right time.”

Fintech expands accessibility to websites for those with disabilities

Financial advisor digital marketing firm Advisor Websites launched AccessAble that enables website access for users who have disabilities in vision, motor skills and cognition. “Around the world, there are over one billion individuals with disabilities holding a purchase power of more than $6 trillion,” Advisor Websites’ CEO Graham Turner said in a statement. “In the United States alone, one in four Americans are living with a disability, making it critical that businesses provide a website experience that is accessible to all. That’s why we are offering AccessAble – empowering financial advisors to reach new clients while bolstering a positive brand, all while driving greater inclusivity.

Deutsche Bank Securities to pay $2M over FINRA best execution case

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An alternative trading system named SuperX caused unnecessary delays and higher costs in some instances for clients of Deutsche Bank’s U.S. brokerage arm between January 2014 and May 2019, according to a FINRA letter of acceptance, waiver and consent. Without admitting or denying the regulator’s allegation that it violated the firm’s duty to seek best execution of its clients’ orders, the firm agreed to pay a fine of $2 million. “The duty to seek best execution for customer orders is a fundamental obligation of any broker-dealer that buys or sells securities on behalf of customers,” FINRA Head of Enforcement Jessica Hopper said in a statement. “We will continue to pursue disciplinary action against firms that fail to use reasonable diligence to execute customer transactions so that the price is as favorable as possible under prevailing market conditions.”

FPA names Carson Coaching its official partner

The Financial Planning Association entered into a strategic partnership with Carson Coaching in which Carson Group’s advisor coaching arm for FPA members will receive complimentary and discounted access to the firm’s services. Members can find the details in a dedicated section of the organization’s website. “Carson is a recognized name in the financial services industry, and their coaching programs have helped thousands of professionals and business owners achieve a higher level of success,” FPA CEO Patrick Mahoney said in a statement. “This value-add partnership enhances the opportunities our members have to receive the important practice support they need.”

Steward Partners recruits $600M team from Wells Fargo

Raymond James-associated hybrid RIA firm Steward Partners Global Advisory recruited financial advisors James Sahagian, Peter Gordinier, David Puccia, Yan Lin Sim and Maral Sahagian of Ramsey, New York-based Ramapo Wealth Advisors. The team left Wells Fargo, where they managed $600 million in client assets. “My partners and I decided to form an independent firm because this business model allows us to do so much more for our clients. We spent a couple of years on our due diligence before we chose to join Steward Partners,” James Sahagian said in a statement.

Nearly two-thirds of financial advisors have succession plans

A little more than 64% of financial advisors have succession plans after 38% carried them out in the last several years, according to a new survey of 460 financial advisors using the SmartAsset platform to find prospective clients. Of those who don’t yet have plans in place, just over half of them, at 56%, anticipate they will create one at some point. “Though financial advisors expertly help clients plan for their future, they sometimes neglect to apply the same forethought to their own firms,” SmartAsset mortgage, savings and retirement expert Stephanie Horan wrote in a blog about the findings.

Cetera in bid to make onboarding transitions easier

Independent wealth manager Cetera Financial Group sought to make it easier for incoming practices to migrate onto its software platforms after affiliating with the firm. The company has launched Accesslink, which it says will streamline advisor transitions. “Changing firms is a big step in any financial professional’s career, and Accesslink helps ensure it’s a big step forward at Cetera,” Jamie Baker, the director of Cetera’s onboarding team, said in a statement. “The Accesslink experience provides a common, disciplined approach that is flexible to the needs of individual financial professionals.”

Former head of Allianz Life Financial Services launches new firm called Bonsai

Led by former CEO of Allianz Life Insurance Financial Services, Robert Dechellis and founding partners including Frank Porcelli, the onetime head of U.S. wealth with BlackRock, launched a new firm called Bonsai, which will offer advisors and wealth managers consulting, practice management services and insurance planning technology. “Bonsai was created with the vision of recasting the future of financial advice,” DeChellis said in a statement. “We are obsessed with empowering our clients and partners to achieve their determined outcomes.”

LPL enterprise Independent Advisor Alliance adds ex-Cambridge team

Financial advisors Robert Dolnik, Tanner Leister and Peter Wagner, as well as client relationship specialist Erica Schilke, left Cambridge Investment Research to align with LPL Financial as its brokerage and the Independent Advisor Alliance as its office of supervisory jurisdiction. The team, Menomonee Falls, Wisconsin-based Harvest Wealth Management, had $128 million in client assets with its prior firm. "Our clients believe in us and rely on us to help them achieve their financial goals," Dolnik said in a statement. "Through our partnership with Independent Advisor Alliance, we have access to the technology and services we need to support us so we can deliver on our promise and continue to elevate and enhance our clients’ experience."

Fund manager launches The Strategic Commodity Fund

The Strategic Funds, a Dorado, Puerto Rico-based alternative investment management firm, launched The Strategic Commodity Fund, a new private hedge fund the firm says identifies a new category of commodities. The six sub-segments within their defined investment universe include: data, green energy, traditional energy, metals and materials, agriculture and fresh water and the logistics of trade. “The world doesn’t just run on oil anymore, today it runs on oil and data,” Nikolas Joyce, the firm’s chief information officer, said in a statement. “We believe that the 2020s will be a decade of major transition, as human civilization begins the unprecedented process of changing how we get our energy. We are seeing a move out of pollutive hydrocarbons and into renewables like nuclear, solar, wind and hydrogen. It’s a huge paradigm shift, and The Strategic Commodity Fund is designed to harness that shift.”

Stifel poaches $163M team from Wells Fargo

Wells Fargo Advisors lost Hyannis, Massachusetts-based Sullivan Wealth Management Group to Stifel. Under 37-year industry veteran advisor Robert Sullivan, his wife and senior registered client service associate, Kristine Sullivan, and their son and client service associate, Michael Sullivan, the practice managed $163 million in client assets with their prior firm. “Stifel is one of the leading investment firms in the country with a company philosophy of putting clients first,” Robert Sullivan said in a statement. “After spending time with our local manager, Susan Lowry, and senior leadership in St. Louis, I’m certain that Stifel will provide us the resources and energy for our team to support our clients.”

RIA consolidator promotes chief growth officer to president

Torrance, California-based EP Wealth Advisors promoted Chief Growth Officer Ryan Parker to be president of the RIA, which has acquired 22 firms in the past five years. In addition, the firm tapped industry veteran Alan Berkshire to be its general counsel. They report to CEO Patrick Goshtigian and managing directors Brian Parker and Derek Holman. “To accelerate and sustain our ongoing growth, we have been thoughtful in how we are structured to be successful today and in the future,” Goshtigian said in a statement. “Both Ryan, in his current role, and Alan as a consultant, have been instrumental in the evolution of our strategic planning and execution of key initiatives. In their new positions, they will help ensure that we are delivering an outstanding experience for clients and enabling our employees’ success.”

RBC grabs $270M team from UBS

Financial advisor Ryan McHugh, registered client associate Nona Coleman and senior investment associate Jordan Freund left UBS to join RBC Wealth Management in Bend, Oregon. The team managed $270 million in client assets with its prior brokerage. “We were drawn to RBC Wealth Management’s unique culture and deep respect for the client-advisor relationship,” McHugh said. “The firm’s values closely align with our own. This, paired with the broad platform of resources, support and autonomy granted to advisors, made it the best fit for our team.”

Fintech startup Best Egg lands $225 million

Best Egg, a financial wellness fintech, secured $225 million of preferred equity capital in a fundraising round led by the Healthcare of Ontario Pension Plan. In addition to financial wellness, Best Egg also offers online credit and personal loans. In 2021, the company brought in $300 million in revenue and facilitated $4.6 billion of personal loans.

iCapital acquires Stifel’s alt investment feeder fund

Alternative investments company iCapital has acquired Stifel’s alternative investment feeder fund platform, which supports distribution of a suite of hedge fund strategies. The feeder fund will use iCapital’s technology to automate the onboarding, subscription processing and lifecycle operations. iCapital has done similar deals with financial institutions such as Wells Fargo, Morgan Stanley, Bank of America, Deutsche Bank and Credit Suisse. Following close, iCapital will service more than $118 billion in platform assets, according to the company.

Lovell Minnick Partners invests in STP Investment Services

STP Investment Services, a provider of outsourced investment operations, received a “significant growth investment” from private equity firm Lovell Minnick Partners, though neither firm would specify a dollar amount. STP plans to use a capital infusion to accelerate its own investments in innovation, technology, workflows and talent, as well as pursue M&A opportunities. “Having invested in over 30 asset managers, wealth managers and technology and outsourcing providers serving the investment product value chain, we have a deep appreciation for the operational challenges that investment managers face in today’s market environment,” said Brad Armstrong, a partner at Lovell Minnick. “As a technology-driven, outsourced service provider with broad capabilities across asset classes, STP is uniquely positioned to help clients thrive while delivering first-class service.”

Holistiplan partners with Texas Tech School of Financial Planning

Holistiplan, which provides tax planning software for financial advisors, announced that it will provide students in Texas Tech’s School of Financial Planning with free access to its technology. TTU has similar partnerships with financial planning products like eMoney and MoneyGuidePro, and adding Holistiplan can help teach the future generation of advisors more about providing tax planning to clients, said Holistiplan co-founder Roger Pine. The fintech is also in conversations with other universities and hopes the partnership with TTU is just the first of many. “As an educator, I feel it’s a huge value to get this tool in the hands of our financial planning students,” said John Salter, a professor of practice at TTU and a partner at Evensky & Katz/Foldes Wealth Management. “Adding Holistiplan to their toolbox is a natural fit alongside those other great fintech tools.”