In the response filed by the lead financial advisors of OpenArc, including senior managing partner Erik Bjerke, they argued that they followed procedure under the Protocol for Broker Recruiting , an agreement between securities firms that allows for advisors to take certain client contact information with them when they leave if both firms are part of the protocol. OpenArc, the advisors argue, had become part of the Broker Protocol when the client information was gathered.On Friday, the defendants filed sep ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Commonwealth Financial Network has seen more advisor attrition in the wake of LPL’s acquisition of the independent broker/dealer, which closed in early August. Kestra Financial, Cambridge Investment Research, Raymond James and Arkadios are the latest competitors to pick up Commonwealth advisors, according to regulatory filings as of Sept. 9. Kestra recently added eight advisor teams, including T ...

Core Insights - Understanding financial advisor compensation is crucial for consumers, with 36% unaware of how they pay for services and 20% believing services are free [1][2] Compensation Models - Advisor compensation is primarily categorized into commission-based and fee-based relationships [2] - Fee-based compensation can include various structures such as annual fees, monthly subscriptions, one-time consultations, or asset-based fees [3][4] Commissions - Commissions are one-time payments for selling specific financial products, with a decline from 23% of advisors in 2024 to an expected 16% in 2026 [5] - Pros include potentially lower costs for consumers needing specific product advice [6] - Cons involve conflicts of interest, where advisors may recommend products that yield higher commissions rather than optimal solutions [8] Assets Under Management (AUM) Fees - AUM fees are typically around 1% of assets managed, with 72% of advisors using this model in 2024, projected to rise to 78% in 2026 [9][10] - Pros include a common compensation structure, but cons include a focus on investment advice rather than comprehensive financial planning [11][12] Flat Dollar Fees - Flat fees provide predictability and align incentives between clients and advisors, but may be high for those with limited funds [13][15] - This model can exclude clients with fewer investable assets, as it may not be profitable for advisors to take them on [15] Subscription, Hourly, and Per-Engagement Fees - These models are straightforward and may be cost-effective for certain consumers, particularly those with less financial complexity [20] - However, accountability may be lower, and finding advisors who charge these fees can be challenging, with less than 1% of advisors using this model in 2024 [20]

Core Viewpoint - Raymond James has initiated legal action against Pietro Melia, alleging he solicited clients using confidential information from his late wife's company laptop, which he initially refused to return [1][7]. Group 1: Legal Proceedings - Raymond James filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against Pietro Melia for not returning a company laptop and soliciting clients for another firm [1]. - Melia has since returned the laptop and stated in an affidavit that he never accessed it, only turning it on to show that it contained privileged information [2]. - The court dismissed Raymond James' motion for expedited discovery, agreeing with Melia's affidavit that there was no evidence he accessed the laptop [4]. Group 2: Client Solicitation Allegations - The original complaint alleges that Melia used client contact information from the laptop to solicit clients for Wealthcare Management Services, a firm affiliated with LPL Financial [7]. - Raymond James expressed concerns that Melia accessed confidential information, noting that some individuals he solicited had no relationship with his late wife and were not clients of Raymond James [6]. Group 3: Defense Arguments - Melia's opposition to Raymond James' motion argues that the firm has no evidence he accessed the laptop and that he obtained contact information through personal connections [3]. - Melia requested the court to deny Raymond James' request for early discovery and to produce the results of a forensic analysis on the laptop [9].

Grant Thornton has appointed Cameron Bacon as new national head of corporate finance. Bacon, who has a 25-year tenure in corporate finance, possesses expertise in mergers and acquisitions, capital raising, and strategic growth planning. Previously a partner in financial advisory, Bacon has background in advising clients across various sectors, particularly in food and beverage, and agribusiness. His leadership in Grant Thornton’s Agribusiness, Food & Beverage industry group has been generating insights ...

Core Insights - The article emphasizes the importance of verifying the legitimacy of prospective clients' funds to prevent money laundering and comply with financial regulations [1][4][5] Group 1: Financial Crime Trends - Bad actors are increasingly using digital currencies to navigate financial systems, making it challenging for institutions to detect suspicious activities [2] - Approximately 5,000 US financial institutions file around 4.5 million suspicious activity reports annually, with a significant amount tied to money laundering networks involving Chinese and Mexican entities [3] Group 2: Red Flags for Advisors - Advisors should be cautious of funds originating from high-risk jurisdictions such as Cyprus, Seychelles, the Bahamas, or the Cook Islands, as these are considered bank secrecy havens [4] - Specific warning signs include small US businesses receiving unexplained wires from countries like Mexico, China, Hong Kong, or the UAE, clients whose income does not align with their occupation, and customers using credit cards for large purchases of electronics or luxury goods [7] Group 3: Vulnerability of Smaller Firms - Smaller advisory firms may be more susceptible to money laundering due to their lack of infrastructure for monitoring transactions effectively, making them attractive targets for illicit activities [4][5]

Core Insights - The role of CFOs is perceived as evolving towards a more strategic focus, although it has historically included strategic elements [2][3] - CFOs are increasingly required to manage complex responsibilities, including technology adoption and personnel management, which are becoming more visible [3] - There is a debate among finance leaders about whether the CFO role is changing or has always been strategic [3] Group 1: Perspectives from CFOs - Tony Ciotti, CFO of Riveron, notes that the CFO role is evolving rapidly, especially in private equity-backed companies, emphasizing the importance of exit experience and the need for agile operators [4] - Eric Mason, CFO of CAAS and SLG, asserts that the CFO is a strategic role essential for organizational growth and execution of strategic plans, often second only to the CEO [5] - Chris Ortega, CEO and fractional CFO of Fresh FP&A, highlights the shift from a tactical to a strategic partnership role for CFOs, suggesting that they should allocate 80% of their time to strategy and 20% to execution [6]

Core Insights - The article highlights the increasing prevalence of scams, particularly in the cryptocurrency space, targeting older adults, leading to significant financial losses [2][5]. Group 1: Scam Overview - Common scams include fake initial coin offerings (ICOs) and fraudulent digital wallets that deceive victims into providing private keys [1]. - In 2024, 147,127 Americans aged 60 and older reported losses of $4.885 billion due to scams, with cryptocurrency scams accounting for over 33,000 complaints and $2.839 billion in losses [5]. Group 2: Defense Against Scams - Education is emphasized as a crucial defense against scams, particularly for individuals aged 60 and above, who are most likely to fall victim to fraudulent investments and phishing schemes [2]. - Financial advisors are recommended for their ability to identify legitimate investment opportunities and help clients avoid risky ventures, especially in the digital currency market [4]. Group 3: Investment Alternatives - The article suggests avoiding cryptocurrency investments entirely, especially for older adults and pre-retirees, due to the volatility and risks associated with these assets [6]. - Traditional investment options such as precious metals, real estate, and the stock market are presented as safer alternatives that can provide steady growth over time [7][11]. Group 4: Specific Investment Options - Gold IRAs are highlighted as a method for building retirement funds with inflation-hedging assets, requiring a minimum purchase of $10,000 [9]. - Real estate investments through platforms like Arrived allow individuals to invest in shares of vacation homes or rental properties, starting with as little as $100 [12]. - First National Realty Partners (FNRP) offers accredited investors opportunities in necessity-based commercial real estate, focusing on grocery-anchored properties for reliable income streams [13]. Group 5: Stock Market Insights - Moby, an investment research platform, provides expert stock picks and has outperformed the S&P 500 by an average of 12% over four years, presenting a safer alternative to cryptocurrency investments [16][17].

Core Insights - The article discusses whether a $750,000 Roth IRA combined with $1,800 in monthly Social Security benefits is sufficient for retirement, suggesting that it may be adequate for many individuals based on median income and the 10x rule [1][2] Group 1: Retirement Planning - The adequacy of a $750,000 Roth IRA and $1,800 in Social Security benefits depends on individual financial management and retirement expectations [2] - Continuous investment is highlighted as a critical factor often overlooked in retirement planning, with a warning against relying solely on savings [3] Group 2: Income Generation - Investing in income-producing assets, such as real estate, is recommended to enhance retirement quality and provide additional income streams [3] - A "bucket" approach is suggested for managing risk, where a portion of the portfolio is allocated to safe assets like annuities or bonds to ensure reliable income [5][6] Group 3: Financial Advisory - Engaging with a financial advisor is encouraged for building a retirement income plan and identifying new income streams [3][5]

Core Insights - Perella Weinberg Partners has appointed Hanadi Al Hamoui as a Partner to enhance its Consumer & Retail capabilities and expand its geographic reach in EMEA [1][3] Company Overview - Perella Weinberg Partners is a leading global independent advisory firm that provides strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [4] - The firm operates with approximately 700 employees and has offices in major cities including New York, London, Houston, Los Angeles, San Francisco, Paris, Chicago, Munich, Denver, Calgary, and Greenwich [4] Appointment Details - Hanadi Al Hamoui joins from Bank of America, where she was a Managing Director leading the Home & Personal Care practice in EMEA [2] - Her extensive experience includes advising leading consumer corporations and high-growth businesses, which will be crucial for advancing Perella Weinberg's global Consumer & Retail business [3]