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FINRA: Broker numbers up for first time in years

12:56 08 May in In the News by rafferty

May 4, 2023 By Dan Shaw, Financial Planning   The number of people joining the brokerage industry increased for the first time in several years in 2022, driven by wealth managers joining both pure-play broker-dealer firms and hybrid outfits with an advisory arm. That's according to the Financial Industry Regulatory Authority's latest industry snapshot, released on Thursday. The number of registered representatives at brokerages rose to 620,882 in 2022, up from 612,435 the previous year. Although that was only a modest 1% increase and the 2022 total came in below the 629,475 registered reps recorded in 2018, it still marked the first time the figure had climbed in at least the five previous years. Increases were seen in both the number of firms registered solely with FINRA, the broker-dealer industry's self-regulator, and so-called hybrid outfits with advisory arms...

Ex-Cetera branch manager wins $500K over breakdown of M&A deal

22:48 02 May in In the News by rafferty

April 28, 2023 By Tobias Salinger, Financial Planning Nearly seven years after a Cetera Financial Group branch's succession plan fell apart, FINRA arbitrators held its regional directors liable for damages of more than a half a million dollars. Betsy Jo Merritt won an award of $512,500 in compensatory damages from Janice G. and John D. Cartwright of Long Beach, California-based CLG Wealth Management after accusing the Cetera Advisor Networks regional directors of tortious interference with contract, breach of fiduciary duty, fraud, negligence and state business laws.  Financial Planning obtained the arbitration filing alleging that an agreement for Merritt to sell her branch, also known as an office of supervisory jurisdiction, to a then-Cetera financial advisor named Joseph E. Singleton for $2.1 million was undercut when the Cartwrights recruited two advisors from Merritt's group to their own firm....

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...