For many years, brokerage and bank Charles Schwab has been providing financial services to investors. However, Schwab advisors have been collecting higher fees from clients than previously reported. Amidst several widespread changes throughout the financial services industry, Schwab Advisor Services Executive Vice President Bernie Clark claims that advisors offer an increased amount of services in order to collect higher fees.
Former compliance associate, Vincent Joseph Storms, has been barred from affiliation with any FINRA member in any capacity. This ruling was handed down on July 3, 2019, after Storms failed to file an answer to the complaint or appear for on-the-record testimony.
On March 27, 2019, the Supreme Court issued its opinion in Lorenzo v. SEC, affirming the decision of the United States Court of Appeals for the District of Columbia. The Court held that "dissemination of false or misleading statements with intent to defraud can fall within the scope" of SEC Rule 10b-5(a) and (c) even if the disseminator did not "make" the statements.
The departure of Department of Labor Secretary Alexander Acosta could slow the agency’s effort to revise its fiduciary rule. Mr. Accosta is stepping down after criticism over his role in a deal reached with the alleged sexual offender Jeffrey Epstein.
Over the past 18 months, regional firms like Ameriprise, Raymond James, and Stifel have been accumulating assets at levels unseen before.
The Securities and Exchange Commission (SEC) has recently decided to lower its legal standard of client care for registered investment advisors. However, as of October 1st, the CFP board will proceed with its more demanding standards for client care, which could strip thousands of advisors of their CFP licenses.
Two former USAA financial advisors, Christoper Johnson and Lee Anne Przybyla, were awarded $1.8 million by a Finra on the grounds of wrongful termination. In May 2017, the two advisors were terminated from USAA in San Antonio, Texas. Besides wrongful termination, the advisors alleged defamation, breach of contract, and negligent supervision. According to Finra, each advisor received $350,000 for punitive damages while Johnson and Przybyla were awarded an additional $500,000 and $350,000 in compensatory damages, respectively.
A U.S. District Court judge in Seattle sentenced former adviser, Dennis Gibb, to five years in prison for theft, wire fraud and falsification of records, having defrauded his clients for over a decade.
U.S. District Judge Ricardo S. Martinez sentenced former investment advisor Dennis Gibb to five years in prison for stealing over $3 million from 15 investors.
