Tuesday, July 29, 2014
Changing firms can be a challenging and stressful time. We have spent decades helping advisers change firms, dealing with restrictive covenants, garden leaves, old promissory notes, new promissory notes, injunctions and more. None of it is fun for the adviser, but all of it is manageable with proper planning and the right team in place.
We are seeing indication that recruiting is up the market is encouraging for advisers looking to change firms. According to Financial Planning.com, the high end of the wealth management market is a very, very good place to be right now. Valuations for advisory firms with over $500 million in assets under management are expected to escalate in the wake of this month's Boston Private Bank and Trust's $60 million acquisition of Banyan Partners -- made at what sources say was a valuation of nine times EBITDA. The high-profile sale is also expected to goose interest from well-capitalized financial companies seeking to pick off independent RIAs that have hefty assets, wealthy clients and a steady fee-based revenue stream.
And it is not just the high end. We represent advisers with all manner of revenue streams - you just need to find the right fit, or if you are up to the task - start your own RIA. Need an assist - email me.
For more information visit Valuations to Surge After Banyan Deal?
The attorneys at Sallah Astarita & Cox include veteran securities employment lawyers, inhouse counsel and outside counsel to wirehouses and small shops. We have decades of experience in representation of securities professionals in their employment matters, including promissory note litigation, restrictive covenants, negotiations of new deals, and employment injunction proceedings, nationwide. For more information call 212-509-6544 or send an email.
Monday, July 28, 2014
The reality is that FINRA has made it extremely dificult to obtain an expungement, even where the customer does not object. And it doesn't matter if the customer consents - the process is the same for all expungements.
FINRA has already made the process extremely difficult by limiting the instances where there can be an expungement, AND forcing the arbitrators to hold a hearing to determine that the grounds exist, AND requiring the arbitrators to make specific findings of the existence of the conditions and then refusing to enforce its own arbitrators' decision unless the broker gets a court order.
This is a system designed to make it extremely difficult for brokers who are wrongly accused to get those accusations off of their record. Now the creation of yet another rule.
Having a rule to address an event that rarely, if ever occurs, is either a waste of energy, or a plan to give Enforcement the ability to make inquiries into the details of private settlement agreements. How does FINRA intend to enforce this rule? How many investigations are we going to see into the conditions of a settlement? Can you imagine FINRA sending out 8210 requests for every settlement, requiring brokers and firms to verify that there were no conditions or offers regarding expungement. Or, and FINRA is perfectly capable of, are they doing to stick their regulatory noses into customer settlement agreements by creating a new arbitration rule requiring all settlement agreements to contain attestations by the member and the customer that the rule has not been violated? And how are they going to enforce THAT rule.
Richard Ketchum, FINRA Chairman and Chief Executive Officer is quoted as saying said, "This rule will ... [protect] the integrity of the CRD system and disclosure of material information to investors." Nonsense. FINRA's CRD system is loaded with defamatory and incorrect information, and this rule change does not address the problems with CRD in the least. It just makes it more difficult for brokers to prevent defamatory information from being published about them.
FINRA should spend more time addressing its own arbitrator disclosures, and area which is riddled with errors, omissions and outright false disclosures.
For more information - SEC Approves FINRA Rule to Prohibit Conditioning Settlements on Expungement - FINRA
--- The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions and representation of investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.
Friday, July 25, 2014
Thursday, July 24, 2014
James Robertson will develop and execute the wealth manager's overall strategy in New Jersey, which is the fifth largest state in millionaire households, according to research firm Spectrum.Robertson will coordinate the day-to-day activities of New Jersey portfolio managers, wealth directors and private bankers and bolster the BNY Mellon brand throughout the region, the wealth manager said in its announcement this week.
He will be based in Madison, N.J.
More information is available here
Wednesday, July 23, 2014
SEC Charges Investor Relations Executive With Insider Trading While Preparing Clients’ Press Releases
Thursday, July 17, 2014
FINRA announced today the formation of a 13-member Arbitration Task Force to consider possible enhancements to its arbitration forum to improve the transparency, impartiality and efficiency of FINRA's securities arbitration forum for all participants.
Hopefully they ultimately solicit comments from those of us who are representing brokers in the process, rather than relying on a "task force" comprised of professors, customer attorneys and in-house counsel.
For more information, see FINRA Announces Arbitration Task Force - FINRA
Tuesday, July 15, 2014
Citigroup Inc. (C) agreed to pay $7 billion in fines and consumer relief to resolve government claims that it misled investors about the quality of mortgage-backed bonds sold before the 2008 financial crisis. The bank took a $3.7 billion charge in the second quarter ended June 30 to cover the cost of the settlement.
Citigroup was among lenders including Bank of America Corp. investigated by the Justice Department for allegedly misrepresenting the quality of mortgage-backed bonds as home prices plummeted in 2006 and 2007. JPMorgan Chase & Co. (JPM), the biggest U.S. bank, agreed in November to pay $13 billion to resolve similar federal and state probes.
For more information, Citigroup Reaches $7 Billion Mortgage-Bond Settlement - Bloomberg
The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms and brokers nationwide. For more information contact Mark Astarita at 212-509-6544 or email us.