By A federal judge has given the green light for an investor lawsuit against Vanguard to move forward. The lawsuit pertains to the asset manager’s handling of target-date funds. While some of the investors’ claims were dismissed, others can proceed to the next phase of discovery. The investors are seeking financial compensation and other forms of relief. They filed the lawsuit due to the unexpected tax burden they faced as a result of changes made by Vanguard to its account minimums. This led to a selloff, with many smaller retirement plans divesting from retail funds and transitioning to institutional products.
Planning for the Involuntarily Retired
A crucial aspect of an advisor’s role is helping clients plan for retirement. However, what happens when a key variable, such as the timing of retirement, is taken out of the client’s control? According to a 2023 survey, 40% of financial advisors reported that their retired clients were forced into early and unexpected retirement due to health or other reasons. Our guest columnist provides suggestions for advisors on how to assist clients in navigating this scenario. This includes discussing the possibility of re-entering the workforce in some capacity and helping clients reassess their priorities considering factors such as health, family, and other considerations.
Commonwealth’s Impressive Recruiting Victory
Commonwealth Financial Network has successfully recruited a $3 billion advisory team from Lincoln Investments, marking its biggest recruiting achievement of the year. The Mammini Company, led by Mike Mammini, consists of eight professionals and is based in San Diego. The team serves clients that include labor unions and corporate retirement plans.
Cetera Acquires Avantax, Expanding Wealth Management Portfolio
Cetera Holdings has successfully completed its acquisition of Avantax, a prominent wealth management firm specializing in tax planning services. The acquisition was approved by shareholders, allowing Cetera to add an impressive $82 billion in assets and over 3,100 financial professionals to their roster. Notably, Cetera plans to operate Avantax as a separate entity, emphasizing its commitment to maintaining the brand’s unique identity.
Avantax CEO, Christopher Walters, has announced his intention to step down by the end of the year. Additionally, CFO Marc Mehlman and Chief Legal Officer Tabitha Bailey will be departing following the completion of the sale. These changes in leadership reflect Cetera’s strategic approach to aligning its resources with the newly acquired firm.
Broker Barred for Violating Reg BI
Christopher Kennedy, a broker in the financial industry, has been barred by Finra, the prominent self-regulatory organization for brokerages. Kennedy is accused of engaging in a day-trading scheme that resulted in substantial losses for clients while yielding significant commissions for himself, a clear violation of Regulation Best Interest (Reg BI) and other relevant regulations.
During the period between July 2020 and July 2021, Kennedy allegedly executed an average of 102 transactions per month across four accounts owned by six clients. This excessive trading approach, known as churning, resulted in net losses of $2.3 million for the clients while earning Kennedy a staggering $595,000 in commissions. Finra’s decision to bar Kennedy from the industry reinforces their commitment to protecting investors and upholding ethical standards within the brokerage community.
SEC’s In-House Court System Under Scrutiny
The outcome of this case will have significant implications for the SEC’s ability to enforce regulations through its internal courts. The justices posed probing questions, challenging the legitimacy of compelling enforcement proceedings to occur within the agency’s own tribunal. The resolution of this legal battle will shape the future landscape of regulatory power within the financial industry.
Advisor Q&A: Susan Kingsolver of Morgan Stanley
This week, we had the opportunity to interview Susan Kingsolver, a highly regarded advisor at Morgan Stanley, in our exclusive Advisor Q&A. As the 75th-ranked woman advisor in the country, Kingsolver shared valuable insights into her successful practice and shed light on her investment strategies.
One of the key factors behind Kingsolver’s accomplishments is her ability to forge deep connections with her clients and their families. This personal approach has allowed her to build trust and establish long-lasting relationships that underpin her thriving practice.
Kingsolver also identified several investment sectors that she finds particularly exciting, showcasing her forward-thinking mindset. Furthermore, she discussed how she managed to maintain business continuity despite undergoing major surgery, demonstrating her dedication to both her profession and her clients.
Overall, Kingsolver’s interview offers a glimpse into the world of elite financial advisors and serves as an inspiring example of how personalized service and strategic foresight can lead to exceptional results.
Heading
Hello there!
Before we dive into the details, let’s start by wishing you a fantastic weekend ahead. We hope you get the chance to relax and recharge.
Conclusion
Thank you for your time. We look forward to hearing from you soon.
Best regards, The S Team
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