SEC bars Howard Present, former head of F-Squared Investments

Unless Howard Present pays $12.4 million in penalties, interest and disgorgement, he can't be reinstated
APR 30, 2018

The Securities and Exchange Commission has barred Howard B. Present, former chief executive of F-Squared Investments, from all segments of the securities industry over which it has direct or indirect regulatory authority. In an administrative proceeding, the SEC said that Mr. Present, who in March was found liable in a civil case brought by the commission, will not be eligible for reinstatement until he has paid the $12.4 million in disgorgement, interest and penalties that he owes. In 2014, the SEC sued Mr. Present and said that F-Squared, which at one time was the nation's largest ETF strategist firm, had agreed to pay $35 million and admit wrongdoing to resolve claims it misled investors by falsely advertising the performance of its AlphaSector investment. At its peak, F-Squared managed more than $28 billion in assets, the SEC said. The company filed for bankruptcy in 2015, and its investment strategies and management contracts were acquired by Broadmeadow Capital, a subsidiary of Chicago-based Cedar Capital.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.