In the News

FINRA Sweeps Broker-Dealers’ Cross-Selling Practices

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,

LPL Suitors Most Likely PE Firms

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,