BROWSE BY TOPIC
Stories of Interest
- Latham & Watkins Chair Bill Voge Resigns Over Sexual Messages
- Jefferies Equity Trading Slips Even as Volatility Increases
- Can Jes Staley Fix Barclays Fast Enough?
- Deutsche Bank Slides 6.2% After Warning of $550Mn Q1 Headwind
- UBS to Pay $230Mn to N.Y. in Mortgage Securities Probe
- With At Least 190 Cryptocurrency Exchanges, Here's How to Pick Right One
- Mark Zuckerberg Lost $9Bn in Wealth Over Past 48 Hours
- Keynote Address, ICI 2018 Mutual Funds & Investment Management Conference
- SEC Announces Largest-Ever Whistleblower Awards
- From a $126Mn Bonus to Jail: Fall of a Star Trader
- Barclays Shares Surge as Activist Takes 5.2% Stake
- Standard Chartered Puts Compliance Head Neil Barry on Leave
- Goldman Sachs Pays Women in U.K. 56% Less Than Male Colleagues
- Deutsche Bank Leads Bulls with Higher Trading Revenue Forecast
- SocGen Cuts Traders' Bonus Pool by a Quarter
- Point72's Haynes Resigns as Cohen Seeks a New Type of Leader
- Steve Eisman, Who Called the 'Big Short' During Financial Crisis, Sleeping Easy Now
- Bitcoin's ‘Death Cross’ Looms as Strategist Eyes $2,800 Level - From Current Price of $8,120
- U.K. Brokerage Firm, Investment Manager, CEO Manipulated Trading in U.S. Microcap Stocks - SEC
- Billionaire Investor John Paulson's Hedge Fund Is 'Rightsizing', And a Bunch of Senior Staff are Leaving
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
The Interlocking Directorate at Advisor Group
by Howard Haykin
The FINRA Mutual Fund Waiver Sweep, initiated in May 2016, netted sanctions against at least 4 broker-dealer firms. Each was charged with failing to ensure that mutual fund sales charge waivers were provided to eligible accounts – including retirement plan or charitable accounts.
In settling those FINRA charges, the 4 firms agreed to pay, in total, some $1,670,000 in fines, restitution and pre-judgment interest. They were:
- FSC Securities Corporation (Atlanta, GA) will pay ~$515,000.
- Royal Alliance Associates (Jersey City, NJ) will pay ~$670,000.
- SagePoint Financial (Phoenix, AZ) will pay ~$271,000.
- Woodbury Financial Services (Oakdale, MN) will pay ~$214,000.
While researching the profiles of each firm, I came across some interesting “coincidences” - beginning with the fact that they are all wholly-owned subsidiaries of Advisor Group. In addition, 3 of the firms - FSC Securities, Royal Alliance and SagePoint - were sanctioned by the SEC for similar mutual fund sales violations in March 2016. In that settlement, which cost over $9.5 million in fines, disgorgement and prejudgment interest, the firms allegedly placed certain advisory clients in mutual fund shares classes with higher expense costs when lower expense cost shares classes of those funds were available.
INTERLOCKING DIRECTORATE. But here's where things get interesting - the 4 B/D firms share many of the same Executive Officers – forming something akin to an “Interlocking Directorate.” (according to their CRD Files)
EXECUTIVE OFFICERS ASSOCIATED WITH ALL 4 FIRMS
► Robert John Guldner - CCO, Investment Advisory.
► Cynthia A. Hamel - Director, COO, EVP.
► Nina Schloesser Mckenna – EVP, Secretary
► David Martin Schmidt - Treasurer and Financial Principal, FinOp.
► Thomas Blake Sidlo - Municipal Principal.
EXECUTIVE OFFICER ASSOCIATED WITH 3 FIRMS
► James Dale Price - Chairman
EXECUTIVE OFFICERS ASSOCIATED WITH 2 FIRMS
► John Joseph Dillon – VP, CCO.
► Justin Ives Sacca – VP, CCO.
EXECUTIVE OFFICERS ASSOCIATED WITH JUST 1 FIRM
► Richard David Fergesen – Director, CEO, President of Woodbury Financial Services.
► Derek David Burke - Director, CEO, President of FSC Securities Corporation.
► Jeffrey Michael Auld - Director, CEO, President of Sagepoint Financial.
► Dmitry Nmn Goldin - Director, CEO, President of Royal Alliance Associates.
FINANCIALISH TAKE AWAY. It's no small wonder these firms engaged in like-minded manipulative transactions.