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Author: rafferty

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Cetera to advisors: Selling your practice requires our OK

12:45 31 March in In the News by rafferty

March 29, 2023 By Bruce Kelly, Investment News If financial advisors don't seek the firm's approval, they risk running afoul of securities regulators, Cetera said.   In a major brokerage firm move that appears to some to be coming out of left field, Cetera Financial Group recently alerted its roughly 8,000 financial advisors that selling their practices, often the most valuable asset an advisor owns and controls, requires the approval of the firm. If advisors don’t seek Cetera’s OK, they risk running afoul of securities regulators, particularly the Financial Industry Regulatory Authority Inc., and could even be barred from the industry, according to Cetera. Cetera’s warning to advisors comes as the mergers and acquisition market for all types of advisory practices and firms remains active, even in the face of rising interest rates, last year’s market downturn...

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Cetera warns broker that M&A deals require its approval

14:13 29 March in In the News by rafferty

March 27, 2023 By Tobias Salinger, Financial Planning Cetera Financial Group is telling its thousands of independent brokers that any sales of their own businesses must be approved by the corporate compliance office. Not doing so could lead to potential FINRA enforcement cases, according to the message sent last fall by the Los Angeles-based wealth management firm’s compliance division. Financial Planning obtained a copy of the email blast, which has not been previously reported. The message, marked “confidential,” could come as a harsh warning to any financial advisor who may seek to take assets off Cetera’s platforms when tapping into the ongoing massive M&A transactions across the industry or finding a succession partner. The correspondence carries major implications for independent brokers, who have in many cases left wirehouses in order to operate their own businesses more with more flexibility...

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3 Ways RIA’s Without a BD Have an Edge

12:39 23 March in Articles Written by Jon Henschen by rafferty

March 22, 2023 By Jon Henschen, ThinkAdvisor  Some broker-dealer/RIA firms have been trying to transform their identity away from the broker-dealer side of their businesses to the RIA side — essentially saying they’re RIAs that also happen to own broker-dealers.Marketing maneuvers like this reminded me of a headline I saw last year: “All the Cool Kids Are Going RIA.” On the surface, these broker-dealer/RIAs want to give the appearance of being cool or more sophisticated by being mostly advisory focused while minimizing the broker-dealer side of the uncool fringe. Of course, a BD/RIA can identify itself however it cares to. In my view, though, it would be more constructive for a BD/RIA to show how it differs from independent RIAs that don’t own broker-dealers in a few key areas. 1. Dual Clearing All the independent RIAs...