Wealth briefs: J.P. Morgan launches tax SMA platform, Cetera offers live event help, crowdfunding portals rack up fines and more

May 9, 2022 6:13 AM

The Croatan Institute is inviting wealth management professionals to a webinar on how to use public equities in order “to create institutional and systemic change.” Cetera Financial Group started a service for financial advisors to aid them in hosting their own live or virtual events for clients and prospects. Annuity sales are up in the first quarter of 2022.

This, and more, in our weekly roundup of wealth management news. Scroll down to see all the news.

FINRA fines crowdfunding portals a combined $1.75M in two cases

FINRA fines and suspends former Academy Securities rep.

Without admitting or denying FINRA’s findings, crowdfunding portals Wefunder and StartEngine Capitals agreed to pay combined fines of $1.75 million to settle the regulator’s charges after investigations stemming from examinations. The regulator alleged that Wefunder breached the limits of crowdfunding raises by about $20 million above the ceiling and that StartEngine made misleading issuer communications, among other violations of FINRA guidelines. “Funding portals perform an important gatekeeping role for securities that are offered to investors under Regulation CF, the crowdfunding exemption from securities registration,” FINRA Head of Enforcement Jessica Hopper said in a statement. “Today’s actions highlight FINRA’s vigilance over this developing area of securities regulation and our unrelenting focus on investor protection.”

Free racial equity investing webinar on public equities

The Croatan Institute, a nonprofit research organization, and its Racial Equity Economics Finance Sustainability program are inviting financial advisors and other wealth management professionals to a webinar on how to use public equities in order “to create institutional and systemic change.” The panel features five experts who are advisors, asset managers and researchers discussing how to incorporate social criteria such as workforce demographics and executive representation to make an impact through portfolios. Registration for the event on May 11 from 2 p.m. to 3:15 p.m. is free and available here.

Cetera launches ‘Event in a Box’ to help financial advisors host events

Independent wealth manager Cetera Financial Group started a new resource under its Connect2Investors service for financial advisors in order to aid them in hosting their own live or virtual events for clients and prospects. The new service offers advisors a choice of pre-curated events, including “mixology, charcuterie board-building, mind-hacking mentalist [and] trivia night,” according to a release. The practices can also use the wealth manager’s technology to track the results of the events. The service “creates a unique, simple but effective way for our financial professionals to forge even stronger connections with clients and their families,” Cetera Chief Marketing and Communications Officer Michael Zuna said in a statement. “We anticipate high adoption rates and strong results.”

IT professional charged with insider trading on advice service’s unannounced picks

An information technology professional accessed an investment advice service’s unannounced stock picks without authorization and used them for insider trading transactions that generated millions of dollars in profits, according to federal prosecutors in New York. David Stone faces securities fraud charges. “David Stone used his computer skills to extract pre-publication stock picks from an investment advice service so he could beat the markets and generate millions in trading profits,” Damian Williams, the U.S. attorney for the Southern District of New York said in a statement. “Though Stone may have thought that he could hide his scheme behind IP addresses, other losing trades and donations to his church, he was wrong. This prosecution reflects my office’s commitment to market integrity and a fair playing field for investors.”

J.P. Morgan Asset Management launches Tax-Smart SMA Platform

Signage stands on display outside the JPMorgan & Chase Tower in downtown Chicago, Illinois, U.S., on Saturday, Oct. 7, 2017. AKA J.P. Morgan.

The asset management arm of J.P. Morgan Chase opened Tax-Smart Separately Managed Account Platform, enabling advisors to build customized portfolios with better after-tax returns for clients under a collaboration with software firm 55ip. “Investors and their advisors are increasingly seeking customized investment solutions and higher after-tax returns in anticipation of lower-equity returns and higher taxes in the future,” J.P. Morgan Asset Management Global Head of Asset Management Jed Laskowitz said in a statement. “We’ve dedicated a significant amount of time to building a cutting-edge, digital, on-demand platform that combines J.P. Morgan’s 30-plus years’ experience managing index strategies and 55ip’s leading tax-smart technology.”

Vestwell chosen to administer two states’ auto-enroll IRA programs

The Colorado Secure Savings Program and the New Mexico Work and $ave program, two new state-facilitated retirement savings programs with plan participants from small business employers who are automatically enrolled in them, chose Vestwell and BNY Mellon to administer the new 401(k) accounts. An estimated 1.4 million private-sector employees will gain access to retirement plans under the program, and the two states join Oregon, Maryland and Connecticut in choosing Vestwell. “We are proud to power the first-ever, multistate auto-IRA program in the country,” Vestwell CEO Aaron Schumm said in a statement. “Colorado and New Mexico are pioneering the next phase in retirement savings through cross-state partnerships, bringing dignified savings solutions their workforce deserves.”

Peak integrates Arcus Partners’ Finity360

Independent wealth manager Peak Brokerage Services adopted fintech firm Arcus Partners’ Finity360 digital office software to help registered representatives onboard clients more quickly and enhance their experiences with the firm’s platform. “In speaking with advisory firms across the wealth industry, we have found they face similar problems despite technology adoption: disparate data, disconnected processes, and a lack of control over their own data,” Arcus Partners CEO Gerry Murphy said in a statement. “By the nature of its roots in data management and cloud-based design, Finity360 solves these problems by simplifying how business process workflows link together to provide one consistent experience, giving firms full ownership and control of their data, and providing them with the data intelligence they need to drive their businesses forward.”

Annuity sales ticked up 4% in the first quarter

Total U.S. annuity sales rose 4% year-over-year to $63.6 billion in the first quarter, according to preliminary figures released by industry research firm LIMRA Secure Retirement Institute. “First-quarter annuity sales tend to be a bit slower. While sales in the first two months of 2022 were a bit sluggish, annuity sales in March were at record-high levels,” SRI Annuity Research Assistant Vice President Todd Giesing said in a statement. “Rising interest rates and increased market volatility shifted the product mix this quarter with fixed annuity products driving the overall growth.”