Head of Securities America gunning for Finra board seat

James Nagengast is challenging Finra's handpicked nominee, Shelley O'Connor, co-head of wealth management at Morgan Stanley.
JUN 13, 2018

James Nagengast, CEO of Securities America Inc., is challening the Financial Industry Regulatory Authority Inc.'s hand-picked nominee for a seat on the regulatory body's board of governors. Both Mr. Nagengast and Finra's choice for the seat, Shelley O'Connor, co-head of wealth management at Morgan Stanley, are vying to fill the vacancy left by Stephen Cutler, former general counsel and vice chairman of JP Morgan Chase & Co. Mr. Cutler resigned from JP Morgan and the Finra board earlier this year to join the law firm of Simpson Thacher & Bartlett. In an election notice Monday, Finra said that a special meeting of large firms would be held on June 28 for the election. Outside nominees for a Finra board of governors' seat are unusual as the board's nominating committee selects candidates for those positions. On Wednesday, the Financial Services Institute, a trade group representing IBDs, endorsed Mr. Nagengast. "Jim's vision, integrity and experience will help Finra in all aspects of its critical work," said Dale Brown, FSI's CEO, in a statement. "We strongly urge all large firms to vote for Jim — he will be a tremendous representative for our industry." In May, Mr. Nagengast received sufficient petition signatures from several large firms to be on the official ballot, according to FSI. If he wins, Mr. Nagengast would be joining two other leaders of an independent broker-dealer on the Finra board. They are Brian Kovack, president of Kovack Securities, and Amy Webber, CEO of Cambridge Investment Research Inc. Mr. Nagengast was not available on Wednesday to comment. The 24-person Finra board is comprised of 12 public governors; 10 governors from the financial services industry; chairman William Heyman, vice chairman and chief investment officer of The Travelers Companies Inc.; and Finra CEO Robert W. Cook. Of the industry members, three represent large firms, three are from small firms and one is from a medium-size firm. Other industry members include a New York Stock Exchange floor member, an independent dealer and insurance firm and one money management company. Board terms last for three years.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management