Morgan Stanley has to pay two former professional athletes over $800,000

Advertisement

Keyon_Dooling

Wikimedia

Keyon Dooling

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.

Advertisement

Morgan Stanley has to pay two former professional athletes over $800,000 (FA Magazine)

The Financial Industry Regulatory Authority announced on Tuesday that Morgan Stanley Smith Barney was ordered to pay two former professional athletes over $800,000 after its brokers recommended "worthless" investments, reports Karen Demasters.

"Keyon Dooling, an NBA player, and John St. Clair, an NFL player, were advised to invest in Global Village Concerns, a start-up sports apparel company. In addition, it was recommended Dooling invest in Club Play, a Miami Beach nightclub," writes Demasters.

"Restitution was ordered for the athletes because of the negligent supervision of the broker by Morgan Stanley, Finra says. The broker, Aaron Parthemer, was barred from the securities industry by Finra in an earlier action."

Advertisement

Half of Americans saving for retirement say they have no idea what they're doing (Business Insider)

Screen Shot 2016 05 25 at 12.50.29 PM

Federal Reserve

The Federal Reserve's 2015 report on US household economic well-being found that 48% of respondents who had either a defined contribution plan or a self-directed retirement plan were either "not confident" or just "slightly confident" in their ability to make the right investment decisions in these accounts, reports Business Insider's Myles Udland.

"In general, men express somewhat greater levels of confidence in their investment capabilities, with 58% of men compared to 45% of women reporting that they are mostly or very confident that they will make the right investment choices," the Fed noted.

The Fed also noted that just over 25% of respondents don't use any financial advice at all when deciding how to manage their retirement savings.

SigFig raised $40 billion from investors (Bloomberg)

Advertisement

SigFig Wealth Management LLC has raised $40 million from investors including UBS and Eaton Vance at an undisclosed valuation, reports Julie Verhage.

"The fundraising is the latest from a robo-advisor, which aims to use new technology to offer better returns than traditional financial advisers," Verhage writes. "One of the largest such 'robos,' Betterment LLC, raised $100 million in fresh funding in March to give the firm a $700 million valuation. Wealth management startup Personal Capital Advisors Corp. also raised $75 million earlier this month."

Wells Fargo is going to announce a robo-adviser partnership (Reuters)

In other robo-advisor news, Wells Fargo & Co will announce a strategic partnership "tied to robo-adviser-type offerings" by the end of June, reports Lauren Tara LaCapra.

David Carroll, the head of wealth and investment management at Wells Fargo, said that the bank's planned deal will enable it to "capture smaller clients who want to management their own investments."

Advertisement

A former LPL executive is joining Edelman as CEO (InvestmentNews)

Ryan Parker, who was most recently the managing director of investment and planning solutions at LPL Financial, is joining Edelman Financial Services as its chief executive, reports Greg Iacurci.

Edelman had about $16 billion under management as of the end of the first quarter this year.