A former advisor from Fidelity Investments has initiated a lawsuit against the company, claiming that he was pressured by advisors and branch managers to direct clients toward high-fee investment options.
Michael Maeker, the plaintiff, states that his branch manager consistently urged him to promote investment products and strategies that were not aligned with the best interests of clients due to their high fees. Fidelity has refuted these claims and has vowed to defend itself vigorously against the allegations.
In other significant news from the wealth management sector this week:
SoFi Technologies has resolved allegations by the Financial Industry Regulatory Authority (FINRA) that it did not perform sufficient due diligence on new client accounts for its SoFi Money service, launched in 2018. The regulatory body contended that SoFi's inadequate oversight allowed fraudsters to open accounts using false information, through which they funneled and stole millions from third-party accounts. SoFi agreed to the settlement without admitting to or denying the accusations.
With interest rates maintaining their highs, wealth advisors face the challenge of navigating this prolonged period of elevated rates. In our latest Big Q feature, experts share their strategies for advising clients in the current economic climate, including prioritizing the reduction of credit card debt, optimizing cash holdings, and exploring opportunities in high-yield private investments.
Wealthfront has introduced an automated tool for constructing bond ladders, responding to the increased interest in bonds due to the high Treasury yields observed in recent years. This new tool is designed to simplify the timing and management of bond investments, catering to the needs of investors seeking higher yields on their idle cash through a user-friendly, automated approach.
Focus Financial Partners has announced the merger of two of its largest registered investment advisor practices, The Colony Group and Buckingham Strategic Wealth. The merger is part of a larger strategy to consolidate its network, creating larger 'hub' practices. Michael Nathanson, formerly at the helm of The Colony Group, has been appointed CEO of Focus Financial, while Adam Birenbaum, CEO of Buckingham, will lead the newly combined entity.
Rockefeller Global Family Office has made a significant recruitment coup by attracting a team that manages $1.1 billion in client assets from Morgan Stanley. The team, which includes Adam Landau, recognized as one of Barron’s Top 1,200 Financial Advisors for 2024, has joined Rockefeller in Charlotte, N.C., a key growth area for the firm. This move is part of Rockefeller Capital Management’s wealth management division's ongoing strategy to expand by integrating high-performing teams since its inception in 2018.
