RIA firm sues Focus Financial for books and records

Strategic Point Investment Advisors LLC, a wealth management firm that was one of the original affiliates of Focus Financial Partners, has sued the company to get access to its financial data.
DEC 14, 2009
Strategic Point Investment Advisors LLC, a wealth management firm that was one of the original affiliates of Focus Financial Partners, has sued the company to get access to its financial data. The action was filed under seal in Delaware's Court of Chancery on Nov. 17 by Strategic Point's holding company, Progressive Financial Strategies LLC, four days after New York-based Focus announced a recapitalization and its first acquisition in more than a year. Focus, a so-called roll-up firm that buys 40% or more of a wealth management firm's revenue in return for cash and equity, would have to respond by tomorrow under normal schedules in the Delaware court, lawyers said. Loretta Mock, a spokeswoman for Focus, declined to comment. By filing under seal, Strategic is likely showing the court that it is flexible about allowing Focus to redact confidential information before filings are made public, according to lawyers who aren't involved in the case. Both Focus and Progressive Financial Strategies are incorporated in Delaware. The decision to sue indicates that Strategic Point is unhappy with recent events at Focus and may want to force a settlement that could allow it to back out of its relationship with the firm, speculated bankers who have worked in the past with wealth management mergers. To read the complete story, please see the Nov. 30 print edition of InvestmentNews

Latest News

Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.
Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.

In a constant fight over control of clients, the financial advice industry has a long history of such allegations and disputes.

Powering retirement for Wall Street
Powering retirement for Wall Street

Retirement fintech Vestwell has hit profitability and $200 million in annual recurring revenue, powering savings programs for 750,000 employers and Wall Street’s biggest firms

Advisor moves: LPL welcomes back RayJay advisor trio in Texas
Advisor moves: LPL welcomes back RayJay advisor trio in Texas

Meanwhile, &Partners has drawn another Wells Fargo team based in Missouri, while an experienced South Carolina advisor has returned to Cetera from LPL.

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains