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FINRA Sweeps Broker-Dealers’ Cross-Selling Practices

15:35 30 October in In the News by rafferty

October 28, 2016 By Melanie Waddell, ThinkAdvisor FINRA focused on nature, scope of BDs’ cross-selling activities and whether they are adequately supervised The Financial Industry Regulatory Authority has launched a review of broker-dealers’ cross-selling programs, and is probing BDs on a laundry list of questions, including whether they’ve opened accounts for clients without their consent. FINRA said in a statement that the self-regulator “often undertakes targeted reviews in areas of regulatory interest. In light of recent issues related to cross-selling, FINRA is focused on the nature and scope of broker-dealers’ cross-selling activities and whether they are adequately supervising these activities by their registered employees to protect investors.” The self-regulator’s probe comes on the heels of the Wells Fargo fake accounts scandal, in which the bank opened 2 million unauthorized accounts to reach cross-sale goals. The bank...

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LPL Suitors Most Likely PE Firms

16:39 15 October in In the News by rafferty

October 13, 2016 By Dan Jamieson, Financial Advisor The most likely potential buyer for LPL Financial -- assuming a deal is done -- would be a private equity firm, observers say. And LPL reps say they’d be fine with that. Reuters reported Tuesday that LPL, the largest independent broker-dealer in the United States, is exploring strategic alternatives, including a potential sale. The news service cited unnamed sources who were familiar with the matter. LPL is working with investment bank Goldman Sachs Group Inc. on a sale process that has attracted other companies and private equity firms, Reuters reported. LPL and Goldman Sachs both declined to comment. As owners, private equity firms would solve LPL’s difficulty in trying to meet Wall Street’s growth expectations, said Dan Seivert, chief executive of Echelon Partners, a mergers and acquisitions consultant. “The goal for the...

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LPL’s ‘Baggage’ May Spoil Search for Buyer: Nomura Securities

00:12 13 October in In the News by rafferty

October 12, 2016 By Janet Levaux, ThinkAdvisor The independent broker-dealer has financial, regulatory and other issues that could inhibit a sale or other deal, according to several sources LPL Financial (LPLA) is reportedly looking at a potential sale or other financial arrangements. But when it comes to finding a buyer, the nation’s largest independent broker-dealer could be in real trouble, analysts say. A deal with LPL “comes with too much baggage,” said Nomura Securities analyst Steven Chubak in a research note Wednesday. While LPL’s shares closed up 7% Tuesday as the news broke, the stock was down 4.5% on Wednesday, trading near $31 (it is down about 26% so far this year). “Early investor feedback suggests E-Trade, Charles Schwab, Raymond James or Stifel Financial could all be potential suitors...

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Cetera Replaces CEO Roth With Moore as RCS Bankruptcy Woes Fade

14:23 02 September in In the News by rafferty

September 1, 2016 By Janet Levaux, ThinkAdvisor The IBD appears to be replacing a ‘wartime leader’ with a ‘peacetime leader,’ one observer says Less than a week after talk of a possible change at the top, Cetera Financial Group says board Chairman Robert J. Moore will take over as CEO from Larry Roth on Sept. 12. According to Moore, Roth will stay on as a consultant through year-end. Board member Robert Dineen is set to become the acting nonexecutive chairman of Aretec, Cetera’s parent company. “This transition was driven by the board and its assessment of the company’s future … and what it wanted to do that would be best” for the firm, its roughly 9,000 affiliated advisors and their clients, Moore said in an interview with ThinkAdvisor. “They asked me to consider the role in...