No Firms Carry Finra’s ‘Restricted’ Tag as Rule Nears Third Year
Almost three years after FINRA introduced Rule 4111 to label high‑risk broker‑dealers with a "restricted" tag, no firm has been officially designated. Consulting firm SLCG Economic Consulting identified nine firms that met the rule's thresholds, all with fewer than 100 brokers, the largest being Spartan Capital Securities with 73. FINRA’s enforcement actions fell 14.4% in 2023, yet investor complaints to the regulator more than doubled, suggesting a gap between formal penalties and client concerns.
Raymond James Promotes Firm Veteran to COO of Private Client Group
Raymond James Financial announced that Patrick O’Connor, a firm veteran of more than 20 years, will become chief operating officer of its Private Client Group effective May 15. O’Connor previously served as COO of the employee advisor unit and led...
Wells Fargo Touts Success of Multi-Channel Approach
Wells Fargo Advisors highlighted its multi‑channel model in Q1, marking a third straight quarter of hiring advisors who generate $100 million or more in production. The independent Financial Network unit added teams overseeing roughly $9 billion in client assets, and a recent...
UBS Faces New Pressure on Nazi Accounts From Senate Panel Chair
U.S. Senate Judiciary Committee Chair Chuck Grassley has accused UBS Group AG of withholding key documents in its probe of Credit Suisse’s historic Nazi-era accounts, a case UBS inherited after its 2023 acquisition. A report by Neil Barofsky, the Credit...
LPL Recruiting Chief Scott Posner to Exit
LPL Financial announced that its senior recruiter Scott Posner will leave the firm in June, ending an eight‑year tenure that began with a vice‑president role in 2018. Posner oversaw an aggressive broker‑recruiting push, but recruited assets fell 30% to $104 billion...
AI Could Spark Next Wave of Advisor Fee Compression, Consultants Say
Industry consultants warn that generative AI is set to compress financial‑advisor fees as tools replicate planning and portfolio analysis. The average advisory fee drops from 125 basis points for $100,000 accounts to 67 basis points for $10 million portfolios, and AI‑driven...
UBS Bringing SMA Oversight In-House
UBS Wealth Management USA is moving the execution and overlay management of its Separately Managed Accounts (SMAs) from third‑party providers to its own asset‑management unit, a shift that began on April 1 and will roll out through 2026. The change cuts...
Corient to Buy $5.6 Billion Chicago RIA
Corient, the Miami‑based wealth arm of Canada’s CI Financial, announced it will acquire a Chicago‑based registered investment adviser managing roughly $5.6 billion in assets. The deal, expected to close by June 30, brings founders David Sternberg and Randal Golden on board as...
Ameriprise Wealth Exec Pat O’Connell to Step Down
Patrick H. O’Connell, who has led Ameriprise Financial’s 2,200‑advisor employee channel and its third‑party bank and credit‑union partnerships for over a decade, will retire on June 1 after a 34‑year tenure. Bill Williams, currently heading the firm’s 8,200‑advisor franchisee business, will...
$2.4B UBS Duo Breaks Away to Open Dynasty-Backed RIA
Two senior UBS wealth managers have left to launch an independent RIA in Naples, Florida, overseeing roughly $2.4 billion in client assets. They registered Evertern Wealth on April 1 and partnered with Dynasty Financial Partners for back‑office and platform services, selling a...
Gibson Dunn Partner Takes Top Enforcement Role at SEC
David Woodcock, a partner at Gibson Dunn & Crutcher, will assume the SEC’s top enforcement post on May 4, succeeding the abruptly resigned Meg Ryan. Woodcock previously led the agency’s Fort Worth office (2011‑2015) and chaired its financial reporting and audit task force, targeting accounting violations....
Stifel Settles Another Chuck Roberts Claim for $1.2M
Stifel Financial agreed to a $1.2 million settlement over a new arbitration claim tied to former broker Chuck Roberts and his structured‑note sales. The settlement adds to a mounting liability that now tops $198 million, including a $133 million arbitration...
SEC Enforcement Actions Fall Sharply in 2025 as Agency Shifts Focus
The SEC reported a sharp decline in enforcement activity for fiscal 2025, filing 456 actions—22% fewer than the previous year. Total sanctions fell to $2.7 billion when the $15.2 billion judgment from a 2009 Ponzi case is excluded, reflecting a 63% drop....
Morgan Stanley Debuts Bitcoin ETF as Price Slump Rattles Holders
Morgan Stanley will become the first Wall Street bank to launch its own spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), on NYSE Arca. The fund, priced at a 14‑basis‑point expense ratio, is the cheapest in a market of...
Finra Fines J.P. Morgan $3.2M for Failing to Supervise Ex-Broker’s Investment Strategy
FINRA has censured and fined JPMorgan Advisors more than $3.2 million for failing to supervise a former broker’s high‑risk investment strategy. The broker ran concentrated, leveraged positions in high‑yield securities from 2016 to 2020, triggering over 10,000 supervisory alerts, many...
Morgan Stanley Plans Private Credit Fund Even as Investors Flee
Morgan Stanley announced the North Haven Strategic Credit Fund, an interval fund that will invest across a broad spectrum of private credit assets and permit quarterly redemptions of up to 5% of outstanding shares. The launch comes as the $1.8 trillion...
Citi Wealth Chief Andy Sieg Fell Off List Top-Paid Execs for 2025
Citi’s 2025 proxy report shows wealth head Andy Sieg dropped off the bank’s five highest‑paid executives, despite a 15% raise to $13 million the prior year. He was replaced by veteran international chief Ernesto Torres Cantú, whose total compensation reached $15.5 million,...
Morgan Stanley Bumps Saperstein’s Pay to $34 Million for 2025
Morgan Stanley increased co‑president Andy Saperstein's 2025 compensation to $34 million, a 26% rise from the prior year. The package includes a $1 million salary, $11.2 million cash bonus and roughly $22 million in long‑term incentives tied to performance. The board highlighted his role...
Cambridge to Pay $280K Over Broker’s Improper Annuity Exchanges: Finra
FINRA censured Cambridge Investment Research, ordering a $280,000 payment for supervisory failures involving variable annuity exchanges. The penalty comprises a $150,000 fine and roughly $130,000 in restitution to 14 customers who faced unnecessary surrender fees. From 2018 to 2025, Cambridge...
New York Brokerage Public Pitches Stock-Trading AI Agents
Public, a New York‑based brokerage founded in 2019, announced AI‑driven agents that automate trading strategies for self‑directed investors. The agents can monitor markets and execute recurring trades, from generating $5,000 a month in covered‑call income to same‑day options tied to...
Billionaire Nelson Peltz Plans AI Makeover for Janus Henderson
Nelson Peltz’s Trian Fund Management has agreed to buy Janus Henderson Group for roughly $8 billion, or $52 per share, ending a brief bidding war with Victory Capital. The deal pairs Trian with tech‑focused investor General Catalyst, which will deploy its...
Osaic Asks Court to Toss United Capital Poaching Suit
Independent broker‑dealer Osaic filed a motion in Delaware Superior Court to dismiss United Capital's poaching lawsuit, arguing the complaint relies on vague, conclusory allegations. United Capital claims Osaic induced three Florida advisors to breach contracts, taking client data and about...
M&A Round Up: Savant Buys $6B RIA Exencial, Mercer Adds $1.5B Firm
Illinois‑based Savant Wealth Management announced the acquisition of Oklahoma City’s Exencial Wealth Advisors, a $6 billion‑asset RIA, marking its largest deal to date. The transaction adds 110 employees, including 28 advisors, and expands Savant’s presence across California, Connecticut, North Carolina and...
E*Trade in Talks to Lead SpaceX IPO for Retail, Report Says
Morgan Stanley’s E*Trade unit is negotiating to become the primary conduit for retail investors in SpaceX’s upcoming IPO, potentially outpacing rivals Robinhood and SoFi. SpaceX may set aside as much as 30% of the offering for individual investors, a move...
Arbitrators, High-Profile Expungement Firm Square Off Over ‘Defamatory’ Award
A FINRA arbitration panel accused Peter Lindholm of HLBS Law of lying about his client Yvan Cao’s availability, labeling the conduct defamatory and recommending referral to licensing authorities. HLBS and its founder Owen Harnett have formally requested that FINRA correct...
Private Credit, Crypto Face Easier Path to 401(k)s in US Plan
The Labor Department’s new rule proposal would give 401(k) plan sponsors legal protection to add alternative assets such as private credit, private equity, crypto and real estate. By blunting class‑action litigation risk, the rule could open the roughly $14 trillion alternative‑asset...
SEC Semiannual Reporting Plan Advances to White House for Review
The SEC’s semiannual reporting proposal has been forwarded to the White House’s Office of Management and Budget for review, clearing a key procedural hurdle. After OMB clearance, the commission can vote to release the draft and solicit public comment, followed...
Citi Eyes Regional Bank Deal as Fraser Turns to Next Chapter
Citigroup executives are quietly evaluating a purchase of a major U.S. regional bank to dramatically boost deposits, a stark departure from CEO Jane Fraser’s recent focus on organic growth. Potential targets such as Truist and PNC each hold roughly $500 billion...
Merrill Fires Back at Dynasty’s ‘Highly Personal Attacks’ in OpenArc Dispute
Brokerage giant Merrill Lynch filed a new brief in federal court seeking to lift the stay on its lawsuit against Dynasty Financial Partners or compel arbitration over the "OpenArc" raiding claim. Merrill argues Dynasty implicitly consented to FINRA arbitration, while...
Finra Waives Morgan Stanley’s Disqualification Over $15M SEC Settlement
FINRA has waived Morgan Stanley’s statutory disqualification that stemmed from its December 2024 $15 million SEC settlement over supervisory failures. The self‑regulatory body approved the waiver without a hearing, noting the firm’s adoption of a two‑year heightened supervision plan and remedial...
JPMorgan Seeks TRO Against Bank-Based Advisor Who Joined RIA in Indiana
JPMorgan Chase has filed a temporary restraining order in federal court against former Chase Private Client advisor Thomas Staley, who left in February to join independent RIA Maia Wealth. The bank alleges Staley violated a one‑year non‑solicitation agreement by contacting...
Judge Tosses Former Wells Fargo Branch Manager’s Reverse Discrimination Suit
A federal judge in Fort Wayne dismissed a lawsuit filed by former Wells Fargo branch manager Timothy Poppens, who alleged reverse race and age discrimination and defamation. The court found Wells Fargo’s termination reasons—policy violations and failure to meet recruitment targets—substantiated and...
Ex-Focus Exec’s RIA Investment Firm Makes First Bet With Texas Deal
Accelerated Wealth Partners, a new RIA investment platform backed by $200 million from J.C. Flowers, announced its first deal—a minority stake in Houston‑based RIA Advisors. RIA Advisors manages roughly $1.84 billion in assets and employs 27 staff, and will use the capital...
Stifel Loses Bid to Overturn $133 Million Arbitration Award
Stifel Financial's bid to overturn a $133 million FINRA arbitration award was rejected by U.S. District Judge Darrin Gayles, who confirmed the award tied to losses from former broker Chuck Roberts' structured‑note strategy. The judgment represents roughly 12% of Stifel's wealth‑division...
Exclusive: UBS Dangles 550% Recruiting Offers to Stem Advisor Exodus
UBS Wealth Management USA unveiled a recruiting package worth up to 550% of a candidate’s trailing twelve‑month revenue, aimed at advisors who generate roughly $7 million annually. The deal provides about 250% of that amount as an upfront payment, with the...
Commonwealth Settles SEC Revenue-Sharing Case for $5M After Challenging $93M Ruling
Commonwealth Financial Network settled its long‑running SEC revenue‑sharing case for $5 million, far below the $93 million originally ordered. The SEC had accused the firm of undisclosed conflicts of interest from 2014‑2018, alleging it steered clients into higher‑cost share classes. A 2025...
UBS Curbs Sale of Some FX Products to Swiss Clients After Losses
UBS Group AG has been barred from offering range target profit forwards (RTPFs) to Swiss retail clients after the products caused deep losses for a small group of investors last year. The bank now limits RTPFs to professional investors and...
UBS Receives Final Approval for US Bank Charter
Swiss banking giant UBS Group AG secured final approval from the Office of the Comptroller of the Currency for a national bank charter in the United States. The charter allows UBS to offer a full range of banking products, including...
Ex-Wells Fargo Broker Wins Bid to Overturn $2.2 Million Arbitration Award
New York Supreme Court Judge Verna L. Saunders vacated a $2.2 million arbitration award against former Wells Fargo Advisors broker Marc Torres, citing undisclosed liens and judgments held by arbitrator Alfreida B. Kenny that suggested bias. The ruling mandates a new...
UBS Faced Technology Outage That Impacted Trading Business
UBS Group AG suffered a global technology outage on Tuesday that forced a halt to portions of its trading business. The bank quickly identified the root cause and deployed a fix, allowing systems to recover. The disruption arrived amid heightened...
Edward Jones Misses Advisor Diversity Goals, Reports Slow Progress in Top Ranks
Edward Jones reported that its advisor workforce remained largely unchanged in 2025, with only 10% of advisors identifying as people of color and 24% as women, falling short of its 2025 diversity targets. The firm met its general partner goal...
Wells Fargo Advisors Shuffles Southeast Divisional Leaders
Wells Fargo Advisors promoted veteran Michael W. McLaughlin to lead its Southeast division, overseeing Florida, Georgia, North Carolina and South Carolina. He replaces Alberto González Saint Geours, who will transition out by May. The appointment follows a 2023 consolidation that reduced...
Edward Jones CEO Penny Pennington’s Pay Dips 3.5% for 2025
Edward Jones cut CEO Penny Pennington’s 2025 compensation by 3.5% to $28.04 million, reflecting a 4% decline in profit margin despite a 6% rise in net income to nearly $2.1 billion. The reduction contrasts with pay hikes for other senior leaders, notably...
Dynasty Fights Merrill’s Attempt to Force It to Arbitrate Raiding Dispute
Dynasty Financial Partners is fighting Merrill Lynch’s motion to force arbitration over a raiding claim tied to the OpenArc breakaway. Merrill argues the court should either compel arbitration or lift the existing stay so its lawsuit can proceed, while Dynasty...
Ex-Merrill Broker Clears Record of ‘Spurious’ Customer Claim
A FINRA arbitration panel cleared former Merrill Lynch broker Brian J. Mariash of a customer dispute, determining the complaints were spurious and updating his BrokerCheck record. The allegations stemmed from advice on equity‑indexed and variable annuities after Mariash moved to...
Creative Planning Buys $660 Million RIA in Seattle
Creative Planning announced the acquisition of Seattle‑based RIA Duncan & Haley, Ltd., adding $660 million in assets under management. The deal brings founder John C. Haley and staff member Kelsey Morrison into Creative Planning’s platform. This purchase follows a series of...
Morgan Stanley, Asset Manager Shares Fall After Redemption Caps
Morgan Stanley shares dropped up to 5% after the bank capped withdrawals from a private‑credit fund, pulling down other asset managers such as Apollo, KKR and Ares. The move follows BlackRock’s recent redemption limits as private‑credit funds grapple with a...
LPL Wins $820K Clawback From Broker Fired Over Viral Racist Comments
LPL Financial secured a clawback exceeding $820,000 from former broker Eileen L. Cure, who was terminated in 2021 after racist comments went viral on TikTok. An FINRA arbitration panel ordered Cure to repay $122,500 in promissory notes, plus $45,320 in...
Joe Duran’s Rise Growth Backs $3.1-Bln Florida RIA Cyndeo Wealth
Rise Growth Partners, founded by former United Capital CEO Joe Duran, has taken a minority stake in Florida‑based Cyndeo Wealth Partners, an RIA managing roughly $3.1 billion in assets. The capital will fund Cyndeo’s recruitment drive and expansion across Florida and...
BofA Co-President Plans ‘More Aggressive’ Advisor Recruiting
Bank of America’s Merrill Lynch division, led by co‑president Dean Athanasia, announced a more aggressive push to recruit financial advisors, aiming to expand its 15,000‑advisor platform. The bank has revived veteran‑focused hiring, backed by a 48% YoY rise in forgivable...