Vanguard, RBC, Raymond James, new board members and the CFP Board's new appeals commission

January 21, 2022 12:47 PM

The new year brought new leadership in boardrooms and management positions across the wealth management spectrum, including the Association of African American Financial Advisors, the Financial Planning Association journal and the Financial Services Institute. The CFP Board has a new Appeals Commission. Captrust Financial Advisors and Beacon Pointe Advisors announced deals to end 2021. And FP Alpha’s technology is integrating with Envestnet MoneyGuide to give advisors more recommendations they can take to clients. Scroll through to find what you might have missed this week in financial planning news.

Financial advisors Brian Amster, Michael Kravitz, Anthony Mazzo and Adam Rothstein left Truist, where the Boca Raton, Florida-based team managed about $1 billion in combined client assets, to join RBC Wealth Management. “The Florida market is ripe with opportunity right now, and we continue to grow RBC Wealth Management’s footprint in the region with top-tier financial advisors and support staff,” Ken Ross, director of the firm’s Florida Complex, said in a statement. “Brian, Michael, Anthony, Adam and their team members are highly talented, well-respected in their community and ready to bring the strength and resources of RBC Wealth Management to their clients on day one.” RBC has more than 2,100 advisors in 182 locations with $542 billion in client assets.

The Association of African American Financial Advisors appointed a new executive director and chair of its board. Practice Management Consultants principal Christian Nwasike became the new chairman of the board on Jan. 1, while Jennifer Givens began leading the organization in August after leaving her government relations position with J.P. Morgan’s Asset & Wealth Management division. In the role with the board, Nwasike is replacing financial advisor Lazetta Rainey Braxton, who had been chair since 2017 but will keep her position as president of the AAAA Foundation. In addition to Nwasike and AAAA founder Lecount Davis, the other board members for this year are: Desi Wyatt of Citi, Raymone Jackson of T. Rowe Price, Rickie Taylor of Retirement Plan Consultants and Sheena Gray of J.P. Morgan Chase. Nwasike has been a member of the board for three years, having previously served as treasurer. "I am extremely grateful for the nomination and humbled by my colleagues' unanimous support,” Nwasike said in a statement. “I am proud to carry forward the strong foundation that was built by our outgoing chairwoman, Lazetta Rainey Braxton. In that spirit, I ask AAAA's community for support as we continue along our ambitious path of growth and impact.”

Private equity-backed RIA consolidator Captrust Financial Advisors finished 2021 with a record-breaking volume of 11 incoming teams added through M&A deals. New Orleans-based Crescent Capital Consulting, which has $1.5 billion in client assets, as well as Nashville, Tennessee-based New Market Wealth Management, which has $275 million in client assets, became the latest additions to the firm. President Andrew Wisdom, Executive Vice President Bryan Fitzpatrick and Executive Vice President of Operations Luis Zervigon lead Crescent, which has 16 other advisors and employees on its team. “We are proud of the firm we built over the past 12 years,” Wisdom said in a statement. “As we have grown, our clients’ needs have grown, so we needed access to a broader, deeper and independent platform to meet those needs.” Captrust has acquired 56 firms since 2006.

Atlanta-based midsize independent broker-dealer Arkadios Capital added $500 million in assets under advisement through two incoming teams, including a former J.P. Morgan private client advisor. Blue Chip Wealth Advisors, a Milton, Georgia-based firm that formerly operated as Ashworth Sullivan Wealth Advisors, moved $300 million in assets to Arkadios. Rob Douglass, a registered independent advisor, brough $200 million in assets from J.P. Morgan. He also spent time at Goldman Sachs and Credit Suisse over the last two decades. Arkaidos now has more than $5 billion in assets under advisement and more than 100 advisors. “Blue Chip Wealth Advisors and Rob Douglass are both poised to grow over the next decade, and Arkadios has the tools and the experience to help them get where they want to go,” Arkadios Founder and CEO David Millican said in a statement. “We are entrepreneurial by nature and are uniquely qualified to help successful advisors reach the next level.”

Father-daughter team John and Jennifer Tarantino dropped Morgan Stanley to go independent with LPL Financial as their brokerage and Gladstone Wealth Partners as their office of supervisory jurisdiction. The Florham Park, New Jersey-based team managed $250 million in client assets with its prior firm. “Being a family team, we want to help our clients the way we would help our own family,” Jennifer Tarantino said in a statement. “Going independent really takes that thinking to the next level and beyond. We can make decisions in our clients’ best interests without having organizational influence.” LPL acts as brokerage, RIA or custodian to more than 19,000 financial advisors, 800 bank and credit union-based programs and 450 hybrid RIAs.

La Mesa, California-based Reilly Financial Advisors, an RIA with more than $2 billion in client assets under founders Frank and Don Reilly, sold to private equity-backed consolidator Creative Planning. “I could not have asked for a better business partner than Creative Planning for a few key reasons: their similar business practices and culture, their enhanced — and extremely robust — client service offerings, and their greatly expanded opportunity for employee growth,” Frank Reilly said in a statement. “Simply put, I wanted someone who would prioritize the same level of care for both our clients and employees as the Reilly family has for the last 22 years.” Creative Planning has more than $100 billion in assets under management.

Aspiriant has acquired San Francisco-based Murray, Stok, an accounting firm with 17 CPAs and other tax professionals who will expand the services offered by the RIA’s Exclusive Family Office for its 1,800 clients spanning more than $15 billion in assets under management. Aspiriant is one of the largest RIAs in the country without any passive owners such as private equity firms or other external capital providers. “We estimate that the majority of our clients seek tax planning services in addition to wealth management and financial planning, and our merger with Murray, Stok will support a seamless implementation of both new and existing offerings,” Aspiriant CEO Rob Francais said in a statement.

Independent brokerage network Cetera Financial Group recruited Scottsdale, Arizona-based InTouch Wealth Advisors, which left MassMutual’s MML Investors Services to join Cetera Advisors and the Wilde Wealth Management enterprise. Financial advisors Jason Benedetti, Gus Dekavallas and Larry Ritter lead the team, which managed $186 million in client assets with its prior brokerage. “Joining Wilde Wealth and Cetera empowers us to expand our independence while providing increased flexibility to our clients,” Benedetti said in a statement. “We expect our business will thrive in many ways thanks to the backing and resources of a large network with a specialized community feel.” Genstar Capital-backed Cetera has more than $344 billion in client assets.

Another private equity-backed RIA consolidator, Beacon Pointe Advisors, ended the previous year with five acquisitions and the close of its minority investment from KKR. For the year, Beacon Pointe made 14 deals bringing $7 billion in client assets to the firm, compared to just four acquisitions spanning $2 billion in 2020. The new incoming teams are: Newport Beach, California-based Newport Wealth Strategies; Greenwood Village, Colorado-based Retirement Planning Specialists; Memphis, Tennessee-based Century Wealth Management; Milwaukee-based Next Generation Wealth Management; and Sarasota and Bonita Springs, Florida-based Southern Trust Financial Planning. The latest incoming teams managed a combined $2.02 billion in their prior setups. “With our incredible growth and now 33 offices nationwide and approximately $25 billion in assets under advisement, client-centric service and firm culture are still our forefront guiding principles,” Beacon Pointe CEO Shannon Eusey said in a statement. “We have many bright minds and an energetic professional team that are only going to enhance both. And now, with the support of KKR, we could not be more excited for what lies ahead in 2022.”

A trio of Morgan Stanley brokers left the wirehouse to join Raymond James & Associates in St. Petersburg, Florida. Advisors Paul Manfrey, Greg Bell and Colin Long of The HarborView Group managed $325 million in client assets with Morgan Stanley. Manfrey and Bell each have more than three decades of industry experience, while Long started in the profession in 2011 with Wells Fargo. “Raymond James has provided us with levels of support I’d never experienced to make our transition —and our clients’ transition — as seamless as possible,” Manfrey said in a statement. “That experience speaks directly to the culture and values of this organization.” Raymond James has more than 8,500 advisors and $1.22 trillion in client assets.

The Financial Planning Association appointed Inga Timmerman the new academic editor of its 43-year-old research publication, the Journal of Financial Planning, on Jan. 12. The director of California State University-Northridge’s personal financial planning program will serve a two-year term, replacing Stuart Heckman. In the role, Timmerman will select research manuscripts for peer review and lead the team that publishes the journal. Besides being a professor, Timmerman is the author of a book called “Mastering Money — A Simple Guide to Achieving Financial Success” and the founder of planning firm Attainable Wealth. “We are thrilled to add someone of Inga’s background and experience to our talented journal team to ensure the research we publish is further building the base of professional knowledge for our members,” FPA CEO Patrick Mahoney said in a statement. “She also brings a wealth of experience as a practicing financial planner, which will play a critical role in confirming published research is highly relevant to our members and the work they are doing with clients and their businesses.”

Asset management giant Vanguard plans to combine an existing sustainable investing fund sub-advised by a Scotland-based firm with a new one called the Vanguard Baillie Gifford Global Positive Impact Stock Fund, according to an initial registration statement it filed Jan. 19. If shareholders of the earlier product collaboration, the Baillie Gifford Positive Change Equities Fund, approve the combination, it will become available to the public in the third quarter with an expense ratio that is 6 basis points lower at 0.59%. Similar funds have an average expense ratio of 1.49%, according to Vanguard. The fund offers “the broadest exposure to companies that meet both excess return and impact objectives,” according to Vanguard. Baillie Gifford manages $69 billion in client assets through funds offered by Vanguard.

The CFP Board launched an Appeals Commission to take over all appeal hearings for orders issued by the organization overseeing more than 92,000 certified financial planners. Under inaugural members Denny Crawford, Shelly-Ann Eweka, Susan MacMichael John, Gary Strickland and Jeffrey Weekes, the commission will oversee appeals, rather than the current process through the Code and Standards Enforcement Committee. The CFP Board had released a request for public comment in November on the possible change, though the guidelines of the appeals process will remain the same. “Their extensive professional experience across diverse business segments and their commitment to CFP Board’s high ethical standards will help ensure that our appeals process remains credible to the public and fair to those whose conduct is being evaluated,” CFP Board CEO Kevin Keller said in a statement.

The Financial Services Institute, an advocacy and trade group representing 80 independent brokerages and their 130,000 financial advisors, elected four new board members. They are: advisor Von Cook of Client Centric Advisors and Cambridge Investment Research; Alex David, the CEO of Stifel Independent Advisors; Emily Schlosser, the chief operating officer of BNY Mellon’s Pershing; and Amy Webber, CEO of Cambridge Investment Research. For its 2022 executive committee, FSI appointed Ed Forst of Lincoln Investment Planning as chair of the board, Scott Spiker of First Command Financial Planning as vice chair, James Poer of Kestra Holdings as immediate past chair, Denise Barrows of Barrows Trostle Advisors as finance chair and Steve Horn of Prosperity Financial Group as chair of FSI’s political action committee. "Having a strong, visionary board is crucial during this time of continuous change, and we are grateful to have that in our board of directors," FSI CEO Dale Brown said in a statement. "Each member of the board, including our four newest directors, brings a diverse and unique perspective along with a wealth of experience in the independent financial services industry. Their leadership will guide our continued momentum in advocating for our members and the clients they serve. Ensuring Main Street investors' access to affordable, professional financial advice and services, which is now more important than ever amid market volatility and the evolving regulatory landscape."

The Paramus, New Jersey-based branch of Raymond James & Associates added ex-Bruderman Brothers advisor Chris Hanly. He reports to Complex Manager Christopher Leavy after building a practice with $130 million in client assets over 11 years at his prior firm and Gary Goldberg Financial Services. Before then, Hanly played college football at Hofstra University. “After months of due diligence, I’m pleased to announce my new affiliation with Raymond James,” Hanly said in a statement. “The firm’s excellent reputation coupled with industry-renowned support and resources will allow me to deliver a truly elevated client experience.”

An RIA hired a former client of the firm to be an advisor. Biondo Investment Advisors appointed Luke Barbalich, a onetime health system community outreach coordinator, to be a wealth advisor with the firm. Biondo manages $800 million in client assets out of its main office in Milford, Pennsylvania, and another location in Sparta, New Jersey. “I’ve known Luke as a client for almost 20 years and couldn’t be happier that he’s chosen to move into wealth management at the next stage in his professional development,” Biondo partner Karl Wagner said in a statement. “Luke believes that financial confidence and security are components of overall well-being and approaches every client with that in mind. This belief, along with his interest in all aspects of business and a passion for prudent financial management, meshes perfectly with the firm’s philosophy and made him the ideal candidate to join our team.”

Bay Street As Canada Stocks Retreat As Investors Eschew Pot, Shopify Tumbles People enter and exit from the Royal Bank of Canada (RBC) headquarters in the financial district of Toronto, Ontario, Canada, on Thursday, July 25, 2019. Canadian stocks fell as tech heavyweight Shopify Inc. weighed on the benchmark and investors continued to flee pot companies. Photographer: Brent Lewin/Bloomberg

Financial advisors Lisa Knutson and Jessica Alcorn, as well as senior client associate Karen Ploof, left J.P. Morgan Securities for RBC Wealth Management. The Green Bay, Wisconsin-based Bay Area Wealth Management Group managed $327 million in client assets with its prior firm. Alcorn and Knutson each have more than 20 years of industry experience. They now report to Doug Artus, director of the firm’s Milwaukee Complex. “We are excited to join RBC Wealth Management for its culture and reputation as a firm that provides its financial advisors with the tools and resources to deliver customized plans for clients,” Knutson said in a statement.

GCG Wealth Management, an enterprise affiliated with Advisor Group’s Woodbury Financial Services that has nine offices and $1.5 billion in client assets, recruited financial advisor Nick St. George of St. George Wealth to its Charlotte, North Carolina-based branch. Besides joining the enterprise and leaving Raymond James Financial Services for Woodbury, St. George merged the practice into GCG’s acquisition and succession planning arm. St. George and another practice that merged into the enterprise this month have added $100 million in client assets to the firm. "GCG has the tech stack I was looking for, along with an open-minded and solutions-based leadership team,” St. George said in a statement. “I truly feel as if I have found my home."

Wealthtech company InvestCloud is adding financial advisors to Pink, its corporate financial wellness and life-planning product, through a new partnership with Ameriprise. InvestCloud initially launched Pink for corporations to offer financial planning to employees as a benefit. Now, Pink users can opt in to receive personalized financial advice, tailored investment services and ongoing support from one of Ameriprise’s Advisor Center advisors. “This is particularly relevant, given that according to PwC research, 63% of employees admit that their financial stress has increased since the start of the pandemic and over 45% of employees avoided addressing medical issues due to cost,” said InvestCloud chief strategy officer Will Bailey.

FP Alpha, an AI-driven financial planning technology, has a new integration with Envestnet MoneyGuide that will highlight for advisors additional planning recommendations they can offer clients. FP Alpha’s software will scan client documents — such as tax returns, wills, trusts and insurance policies — to extract data and provide recommendations. The integration with MoneyGuide will allow FP Alpha to pull in information about the clients investment accounts, including retirement savings, brokerage, student loans and 529 plans. Many of FP Alpha’s clients also use MoneyGuide, and the integration will eliminate the need for any duplicate data entry, according to FP Alpha founder and CEO Andrew Altfest.

AdvisorEngine is officially ending Junxure, the advisor-focused CRM it purchased in 2018. In its place, the Franklin Templeton-owned fintech has launched AdvisorEngine CRM, which it says is built on “an entirely new technology foundation” and gives advisors enhanced productivity capabilities. The revamped CRM offers more personalization, new client prospecting tools, a redesigned portal to access client information, and a streaming view of operational activities.