Advisor Group units fined for capital violations

Finra censures Royal Alliance, FSC, SagePoint, Woodbury, levies $550,000 in fines

May 4, 2017 @ 2:30 pm

By InvestmentNews

Four units of the Advisor Group have been censured and fined by Finra for miscalculating their advisory fee income, resulting in net capital deficiencies and financial reporting inaccuracies.

According to a letter of acceptance, waiver and consent, the firms — Royal Alliance Associates, FSC Securities Corp., SagePoint Financial and Woodbury Financial Services — agreed to censures and fines of $260,000, $150,000, $75,000 and $65,000, respectively. The violations occurred between January 2010 and April 2016 in the case of Royal Alliance, FSC and SagePoint, and between January 2014 and March 2016 at Woodbury.

All the firms had errors in their general ledgers, balance sheets and trial balances, and net capital computations, Finra said, and because of those errors, Royal Alliance, FSC and SagePoint were operating in violation of the net capital rule for one month.

American International Group in January 2016 sold what was then called the AIG Advisor Group to private-equity firm Lightyear Capital and Canadian pension manager PSP Investments.

In addition to censuring and fining the firms, Finra fined Inger Wilson Fields $5,000 for her role as financial and operations principal for the firms and suspended her for a month from working in that capacity with any Finra member firm.

In response to a request for comment, a spokesperson for the Advisor Group emailed: "The Advisor Group family of advisory firms (Royal Alliance Associates, FSC Securities Corp., SagePoint Financial and Woodbury Financial) is pleased to have successfully concluded Finra's inquiry into legacy accounting practices related to prepaid investment advisory fees. As a matter of policy, Advisor Group does not comment on regulatory settlements."


What do you think?

View comments

Recommended for you

Featured video


What's the top issue on advisers minds?

Laura Pierson from Carson Group discusses how the old topic of 'Human Capital' is hot again because of millennials.

Latest news & opinion

Best- and worst-performing sector funds and ETFs this year

A rising tide may lift all ships, but a bull market doesn't lift all stock sectors. Here are the best- and worst-performing sectors this year, with the top and bottom fund in each sector.

Betterment slapped with $400,000 fine from Finra

Robo-adviser cited for violating customer protection rule and not maintaining its books and records correctly.

Supreme Court ruling on SEC judges unlikely to upend advice industry

But it could give rise to new hearings for some advisers who are already in litigation with the agency such as Dawn Bennett.

It's official: DOL fiduciary rule is dead

The 5th Circuit Court of Appeals issued a mandate Thursday making its March 15 decision to strike down the regulation effective.

Advisor Group acquires Signator Investors and plans on folding it into Royal Alliance

Advisor Group takes 'orphan' broker-dealer off the hands of John Hancock Financial Services.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print