Finra panel awards adviser $1.2 million from defunct broker-dealer

Finra panel awards adviser $1.2 million from defunct broker-dealer
The award values Capital Guardian at $6.4 million
DEC 10, 2018

A Finra arbitration panel has ruled in favor of adviser Brian Taylor Kirkpatrick in a share-ownership dispute with his former employer Capital Guardian, a now defunct broker-dealer. According to the dispute resolution from the Financial Industry Regulatory Authority Inc., Mr. Kirkpatrick has been awarded $1.2 million for his 15% ownership stake in Capital Guardian, a Miami-based firm. The ownership stake was worth approximately $960,000, but the award included a $255,000 compounded interest penalty. The award valued Capital Guardian at approximately $6.4 million when Mr. Kirkpatrick left the firm and sought to sell his shares in late 2017. Capital Guardian's broker-dealer was shut down and the assets were sold to Kovack Securities Inc. in September 2017.

Latest News

Slow advisor transitions are costing RIA firms money and talent, and the industry is starting to act
Slow advisor transitions are costing RIA firms money and talent, and the industry is starting to act

Operational drag between an advisor signing and accounts going live is emerging as a competitive liability for wealth management firms.

M&A on course for second-highest year ever as megadeals surge and AI complicates the deal equation
M&A on course for second-highest year ever as megadeals surge and AI complicates the deal equation

Bain says companies face a "winner's paradox" as AI transformation collides with complex integrations.

Rumor confirmed: Corient expands with European acquisition
Rumor confirmed: Corient expands with European acquisition

Deal lifts global assets to roughly $523 billion under management.

What wine culture can teach investors about decision-making
What wine culture can teach investors about decision-making

Choice anxiety, prestige bias, and the temptation to make selections based on outsourced confidence are just some of the parallels between investing and the world of wine tasting.

Merrill Lynch, BofA's brokerage arm, hit with $7.5M SEC fine over missed suspicious activity reports
Merrill Lynch, BofA's brokerage arm, hit with $7.5M SEC fine over missed suspicious activity reports

Regulators found Bank of America's monitoring software had a known flaw Merrill left uncorrected for years.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.