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Industry News

Wells Fargo, Raymond James, LPL; plus, climate-focused 401(k)s, and former financial advisor pleads to child porn

By Editorial Staff
March 19, 2022 11:59 AM

LIMRA reported a 14-year high in annuity sales after strong growth in 2021. A former financial advisor pleaded guilty to child pornography charges. Another is being charged with theft from clients. An online advisor is starting climate-focused 401(k) plans. There’s a Kickstarter that hopes to complete funding for a financial literacy game for children. And see how some financial services companies were graded in a gender pay gap report.

These stories, as well as advisor moves for the week, are below in our cardshow. Scroll down to see what you might have missed this last week in wealth management.

Refinitiv partners with Vestorly on AI-powered marketing tools

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Market data and infrastructure firm Refinitiv announced a new strategic agreement with fintech company Vestorly to provide broker-dealers and RIAs with an artificial intelligence-driven content marketing platform. Vestorly’s engine manages and distributes relevant and compliance-safe content to personalize engagement with clients. The technology can also track engagement and content preferences to optimize recommendations over time. Using an advisor’s own data on client interests, hobbies, retirement goals and financial holdings, Vestorly will provide a customized stream of content advisors can access within Refinitiv’s Workspace for Wealth Advisors dashboard.

LIMRA Secure Retirement Institute: Annuity sales reached 14-year high in 2021

Total U.S. annuity sales jumped 16% in 2021 to $254.6 billion, the third-highest increase in a year ever recorded and the largest total since 2008, according to the final results of an annual survey by the LIMRA Secure Retirement Institute. Sales rose 7% to $62.8 billion in the fourth quarter, the industry research organization’s survey shows. Structured or buffered products and fixed-index annuities drove much of the increase, representing 40% of the overall sales, noted Todd Giesing, the assistant vice president of the organization’s annuity research division. “After 2020, there was significant pent-up demand for investment options that offered a balance of protection and growth,” Giesing said. “As a result, registered index-linked annuity (RILA) sales had a record year and fixed indexed annuities experienced the strongest growth in three years.”

Ex-LPL and Wells Fargo advisor charged with stealing from clients 

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Mario E. Rivero Jr., a former Wells Fargo Advisors and LPL Financial advisor from Elizabeth, New Jersey, faces criminal and SEC charges alleging he stole hundreds of thousands of dollars from his clients. Investigators accuse Rivero, 38, of diverting more than $500,000 that clients entrusted to him to invest into gambling and other personal expenses between 2018 and 2020. In the criminal case in Newark federal court, he’s charged with two counts of wire fraud, one count of investment advisor fraud, and one count of securities fraud. FINRA barred him in June after he didn’t respond to its request for information, according to BrokerCheck.

Network for underrepresented advisors chooses ESG and SRI vendor

The Onyx Advisor Network added portfolios with ESG and SRI criteria to its mix of discounted services offered to aspiring planners who are members of underrepresented groups. Financial advisors Dasarte Yarnway and Emlen Miles-Mattingly launched Onyx in December. In addition to existing strategic partnerships around compliance, planning software and CRM, Onyx and asset manager Alpha Architect “co-developed” models that “are focused on investing in affordable, differentiated products of ETF firms that are owned and operated by 1) women, 2) minorities or 3) service-disabled veterans,” Alpha CEO Wes Gray wrote in a tweet about the collaboration. “So our model portfolios directly benefit unique operators. Why does that matter? Well, the ability to affect change will only happen by directly supporting asset managers/advisors. Allocating to ‘ESG’ funds/models created by monopolistic asset managers isn't going to move the needle.”

Financial literacy startup opens Kickstarter campaign for ‘Berryville’ game

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FinLit Tech, a startup backed by Fidelity Investments’ eMoney Advisor, which uses technology to teach children financial literacy, has launched a fundraising campaign on Kickstarter seeking to raise at least $25,000 for the final stage of development of a video game called “Berryville.” The game is based on FinLit Tech founder Mac Gardner’s children’s book, “The Four Money Bears.” Currently available in demo mode, Berryville revolves around a farm managed by bears seeking to build a prosperous business and community. “Your family has given you one chance to rebuild their farming legacy,” according to a briefing about the game on Kickstarter. “Build your own company by learning real financial literacy basics and entrepreneurial skills!” As of this week, the campaign had raised more than $6,000 toward its goal. In addition to working with Dillo Games as the developer of Berryville, the University of South Florida has signed on as a partner in the campaign.

Former financial advisor pleads guilty to child pornography charge

Nicholas Spagnoletti, a former broker with LPL Financial and the Wealth Enhancement Group, pleaded guilty to endangering the welfare of children for the distribution of child pornography, the news outlet Citywire reported. Investigators in Morris County, New Jersey, allege he viewed and sent child pornography on his phone through the Kik Messenger app. Wealth Enhancement terminated Spagnoletti after learning of the arrest in August, and the CFP Board suspended his certification the following month.

Online investment advisor launches climate-focused 401(k) plans

VanEck’s new green bond ETF appeals to the ESG investing trend.
Carbon Collective, a fintech that uses automated asset management on employer 401(k) plans, created what the firm says are the first climate-focused portfolios offered through a robo advisor. Focusing on small businesses with fewer than 300 employees with full integrations on major cloud-based payroll providers such as TriNet, ADP, Gusto, Intuit and JustWorks, Carbon Collective uses Vestwell or Ubiquity for its 401(k) administration. The product carries three options: the firm’s “core climate portfolio,” an option using more traditional ESG criteria, and a standard index model. "We wanted to make sure that mission-driven companies can offer their employees benefits like expanded 401(k) options, which are aligned with climate initiatives,” Carbon Collective co-founder Zach Stein said in a statement. “In today's competitive employment landscape, environmentally focused and socially conscious benefits like these are a critical component to attracting and keeping top talent."

Advisor Group’s SagePoint Financial adds $120M team

Financial advisors Brett Straub and Stephanie Wade of Haddon Heights, New Jersey-based Straub Group Advantage left Principal Securities for Advisor Group’s SagePoint Financial. The team, which aligned with The AmeriFlex Group enterprise in the move, managed $120 million in client assets with its prior firm. “When Stephanie and I started looking for a new affiliation opportunity for Straub Group Advantage, we wanted to find a home where we felt comfortable taking our practice to the next level,” Straub said in a statement. “We found that with AmeriFlex and SagePoint Financial.”

Equal Pay Day ‘scorecard’ gives 24 companies an F and 7 an A

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In honor of March 15 being Equal Pay Day, the day symbolizing the additional time it would take for the average woman to earn as much as a man, investment manager Arjuna Capital and shareholder advocacy firm Proxy Impact released a “Racial and Gender Pay Scorecard.” Pfizer, Mastercard, Bank of New York Mellon, Starbucks, Adobe, American Express and Citigroup received an “A” in the firm’s fifth annual edition of the report. Goldman Sachs, Meta Platforms (Facebook), Disney, Oracle, Walmart and Biogen were among the 24 publicly traded firms receiving an F out of 57 companies graded on quantitative metrics in their disclosures. Each of the 57 companies have received shareholder proposals calling for improvements in their public pay equity disclosures. “Women and people of color are almost always deeply underrepresented in higher-paying positions,” Proxy Impact CEO Michael Passoff said in a statement. “Median pay gap data helps shed light on that problem, and studies show that companies that disclose pay gaps are more likely to fix them.”

Independent wealth manager accused of payments to ‘unregistered’ entities

FINRA fines and suspends former Academy Securities rep.
Without admitting or denying FINRA’s allegations, Crown Capital Securities agreed to pay $75,000 to settle a case accusing the firm of making more than $19 million in commissions to “unregistered entities” between January 2017 and January 2021. The March 11 settlement describes the so-called unregistered firms as 18 “corporations and limited liability companies created by the registered representatives to serve as doing-business-as names for their securities businesses.” The 18 reps disclosed the entities to the firm and received approval for the outside business activities. However, the wealth manager “made payments to the unregistered entities instead of paying commissions directly to the registered representatives,” according to FINRA.

Insured Retirement Institute names Invesco and TIAA executives to board

A trade group for insurance and asset management firms, the Insured Retirement Institute, named Invesco Head of Insurance and Subadvisory Michal Eustic and TIAA Head of Product Development and Implementation Roger Marinzoli to its board. “I am continually impressed with the depth of leadership talent and passion within our industry,” IRI CEO Wayne Chopus said in a statement. “Both Michael and Roger are excited and eager to help IRI navigate the opportunities and challenges of the coming year. I look forward to working with them.”

Alternative investing platform unveils Stifel acquisition, Voya partnership

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A rapidly growing fintech centered on alternative investment technology for wealth and asset managers picked up two more big names in its expanding array of acquisitions and strategic partnership. In one of the deals, iCapital is acquiring Stifel Financial’s alternative feeder fund platform as part of an expansion of the firms’ existing partnership. Upon close of the transaction of an undisclosed amount, iCapital will reach $118 billion across the platform. It made similar previous deals with Bank of Singapore, Wells Fargo, Morgan Stanley, Bank of America, Deutsche Bank and Credit Suisse. In the other deal, iCapital reached an enterprise agreement with Voya Investment Management to provide tech, service and diligence for financial advisors and high net worth clients using Voya’s alternative and private fund offerings. The products include the firm’s Pomona Investment Fund. “As investors look to diversify their portfolios, providing access to PIF via a streamlined and efficient solution makes it easier to invest in private equity, leading to an improved experience for everyone involved in the investment process,” Pomona Capital CEO Michael Granoff said in a statement.

$4B RIA names former TD Ameritrade executive head of wealth management

SageView Advisory Group, an independent RIA with more than $4 billion in client assets, appointed Jim Dario to be its head of wealth management, a position focusing on organic growth strategies and advisory services. He was previously the head of product management and strategy at TD Ameritrade Institutional. His new firm, Newport Beach, California-based SageView, has financial backing from private equity firm Aquiline Capital Partners and a retirement plan business spanning more than $175 billion in employee 401(k) accounts in addition to the wealth management enterprise. As older generations advance toward retirement in ever-larger numbers, SageView's capabilities and expertise as a wealth management solutions provider with its historical focus on financial wellness will be increasingly in demand,” SageView CEO Randy Long said in a statement. “Our hire of Jim Dario to this important new role underscores our firm's commitment to thoughtful yet strong growth in the wealth management space."

Wealth Enhancement Group acquires RIA practice with $287M

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Private equity-backed RIA consolidator Wealth Enhancement Group has acquired Bradenton, Florida-based Integra Capital Advisors, an RIA with $287 million in client assets across two locations and a half-dozen financial advisors. Founder Tom Breiter will remain with the firm alongside Chief Investment Officer Brad Campbell after the deal, which will push the client assets at Wealth Enhancement above $54 billion. "After an exhaustive search for the right partner, my team and I kept coming back to Wealth Enhancement Group," Breiter said in a statement. "I'm convinced we made the right decision, and look forward to leveraging their technology, experience and resources to grow our business and continue our success for years to come."

All-woman team drops Voya for LPL

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Financial advisors Kristi Turchan and Debbie Verker of Grand Rapids, Michigan-based Ascend Wealth Management, along with their operations associate Kassandra McGee, left Voya Financial Advisors for LPL Financial. The team, which managed about $210 million in client assets with Voya, chose LPL as its brokerage and aligned with The Financial Services Network. “We’re in a service industry, and by joining LPL and The Network, we’re aligned with people who share our commitment to providing clients with differentiated service,” Verker said in a statement. “Kristi and I are natural partners, and our experience with LPL and The Network has felt the same; we found a home that truly supports the independent advisor.”

Raymond James adds advisors with $550M in Houston

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Raymond James & Associates, the firm’s employee brokerage, and Raymond James Financial Services, its independent arm, each added new teams in the past week. The employee brokerage picked up an advisor who managed $207 million in client assets with his prior brokerage firm, Edward Jones, in Houston. Financial advisor Lance Murphy now operates out of a branch managed by Alex Reznikov in the Post Oak/Galleria neighborhood of West Houston. “The depth and breadth of the firm’s investment and planning platform, in addition to the advisor-centric culture, is why I joined Raymond James,” Murphy said in a statement. “I am impressed by the firm’s offering and services designed specifically to cater to high net worth families’ needs.” Elsewhere in the city, financial advisors Brandon Glasscock and Mandy Haskell, along with registered client service associate Sara Ferrell, left Wells Fargo Advisors, where they had $350 million in client assets. The team aligned with Wealth Partners Alliance as their enterprise with Raymond James. “Having worked at large firms for over 20 years, the natural evolution was a move to the independent space, where more flexibility and advanced tools and technology will help take our practice to the next level,” Glasscock said in a statement. “I’m absolutely convinced that this transition will improve our clients’ overall experience and that’s what I am most excited about.”
Editorial Staff
Industry News Career moves Fintech Annuities Crime and misconduct
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