Hightower Securities, the brokerage arm of the eponymous RIA acquisition firm, said in a recent Securities and Exchange Commission filing that it could wind up repaying clients as much as $1.2 million for charges related to the sale of the college savings plans known as 529 plans.
The firm said the $1.2 million figure was "estimated remediation," according to its annual audited financial statement known as a Focus report for 2019. Although Hightower filed the report at the start of March it did not become publicly available until recently on the SEC's website.
Because the figure is only an estimate, which firms make in such preliminary filings, the actual amount of remediation could wind up being less.
In January 2019, the Financial Industry Regulatory Authority Inc. told the brokerage industry it was launching a 529 Plan Share Class Initiative. Finra recommended that firms fix potential supervisory and suitability violations relating to advisers making trades for customers of 529 plans that were inconsistent with the accounts' investment objectives.
The regulator was essentially tasking broker-dealers with identifying problems with their sales of high-fee 529 college savings accounts.
Hightower Securities "has been working with Finra to remediate the matter," according to the filing.
The $1.2 million figure Hightower initially set aside should be viewed as a "placeholder," the company said in a statement. It was "based on preliminary assessments that have since been materially revised and recalculated with the help of an approved industry consultant and are currently being reviewed with the regulators," according to the company's statement.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
