HD Vest Tag

Is a Great FINRA Purge Coming?

15:28 29 August in In the News by rafferty

August 26, 2022 By Diana Britton, WealthManagement.com As firms scramble to stay off FINRA’s new 'leper list' of broker/dealers with histories of misconduct, some say smaller businesses and reps with only minor regulatory blemishes are being unduly tarnished. Until recently, registered reps with only a few disclosures on their records could easily find a home at a broker/dealer to hang their license. But those days may be coming to an end, due to the Financial Industry Regulatory Authority’s Rule 4111, which went into effect Jan. 1, 2022. FINRA’s new rule requires broker/dealers that the regulator determines pose the greatest risk to investors to set aside funds in a dedicated account to meet future FINRA fines, including potential unpaid arbitration awards. Broker/dealers don’t want to end up on FINRA’s list, especially one that would be made public, so many are taking steps to avoid it, say recruiters and compliance...

What Kind of Acquiror Will Advisor Group Be?

18:20 24 August in In the News by rafferty

August 23, 2022 By Diana Britton, WealthManagement.com The firm sees an opportunity for RIAs to leverage its platform capabilities, technology and scale to accelerate growth, CEO Jamie Price says Advisor Group, the network of independent broker/dealers, recently entered the M&A market for registered investment advisors for the first time, with the firm making a minority investment in Signature Estate & Investment Advisors, a Los Angeles-based hybrid RIA, alongside Reverence Capital Partners, the b/d network’s majority owner. Advisor Group CEO Jamie Price says this is the first of many strategic investments in growing RIAs the company plans to make in the coming years. The move is part of Advisor Group’s larger efforts to expand its relationships in the RIA channel. About a quarter of the assets on the firm’s advisory platform, after all, are with independent...

Advisor Group Raises $500M in Debt for B/D Acquisitions

19:11 11 August in In the News by rafferty

August 10, 2022 By Diana Britton, WealthManagement.com Moody’s assigned a B2 rating to the notes and changed its outlook on the firm from stable to positive, saying the benefits of higher interest rates will offset the additional debt. Advisor Group announced plans last week to issue $475 million in senior secured notes to help fund its acquisitions of American Portfolios Financial Services and Infinex Financial Holdings, a broker/dealer that supports community-based banks and credit unions. “We are raising the funds in advance of closing both acquisitions,” said Jon Frojen, chief financial officer at Advisor Group, in an email. “We’re pleased that the offering was very successful in what has been a challenging market for issuers.” According to a BofA Securities document obtained by WealthManagement.com, the final offering was for $500 million in notes at an interest rate of 8.625%, due in 2027. BofA,...