Atria Wealth Acquires Grove Point Financial
Atria Wealth Solutions Inc., a “wealth management solutions” holding company, announced the completion of its acquisition of Grove Point Financial LLC from Kestra Holdings. Founded in the eighties as H. Beck Inc., Grove Point was acquired by Kestra in 2017 and rebranded in 2021.
Atria reportedly has six broker-dealer subsidiaries:
Cadaret Grant & Co. Inc.NEXT Financial Group Inc.Western International Securities Inc.SCF Securities Inc.CUSO Financial Services L.P.
Sorrento Pacific Financial LLC.
Atria’s subsidiaries together reportedly support approximately 2,700 financial professionals and nearly $120 billion of assets under management.
The sale follows reports that Kestra Holdings has nearly doubled its debt and interest payments since last year. The company’s debt load reportedly rose 87% over 14 months to around $850 million, and the service payments were estimated to increase the same percentage in 2023, compared to the 12 months that ended in the third quarter, to $84 million, according to a credit opinion report by Moody’s.
Atria Subsidiary accused of REG Bi violations
Last June, we reported that one of Atria Wealth’s subsidiaries, Western International Securities, was the subject of the SEC’s first enforcement action involving Regulation Best Interest.
The SEC alleged that Western International Securities, a subsidiary of Atria Wealth Solutions, sold $13.3 million worth of GWG L Bonds between July 2020 and April 2021 without having a “reasonable basis” to believe the investments were in clients’ best interests. In a civil case filed June 15, 2023, the agency accused Western International and five of its registered representatives of violating the 2-year-old Reg BI rule.
The case against Western International is the SEC’s first direct enforcement action under the rule, which increases scrutiny on broker dealers selling alternative products. The SEC claims that the “high-risk, illiquid investment” didn’t serve Western International clients’ best interests.
FINRA Arbitration and Mediation
The Financial Industry Regulatory Authority, known as FINRA, is the self-regulatory body responsible for overseeing financial advisors and broker dealers. FINRA operates the largest dispute resolution platform for securities-related issues in the United States, known as FINRA Dispute Resolution. Brokerage firms that are registered with FINRA commit to participating in this process, which is designed to address disputes between investors and either the firms themselves or their registered representatives. In most cases, brokerage firms include mandatory arbitration clauses in their account agreements, which stipulate that investors must resolve their disputes through the FINRA Dispute Resolution system.
Additionally, FINRA offers a user-friendly tool called FINRA BrokerCheck. This online resource is available for free and empowers investors to conduct research and verify the backgrounds and qualifications of financial brokers, brokerage firms, and investment advisors who are registered with FINRA.
FINRA BrokerCheck provides investors with comprehensive insights into the professional history, qualifications, and any regulatory actions taken against brokers and brokerage firms. Investors can use this tool to confirm whether a broker or brokerage firm is registered with FINRA and to review their employment history, licensing status, and any regulatory actions or complaints that have been filed against them.
FINRA Lawyers & Securities Attorneys
This information is all publicly available and provided by the securities fraud attorneys at The White Law Group.
The White Law Group, LLC is a well-established law firm specializing in national securities fraud, securities arbitration, investor protection, and securities regulation/compliance. With offices in Seattle and Chicago, our primary focus is assisting investors from all 50 states in their claims against financial professionals or brokerage firms. Since our inception in 2010, we have successfully handled over 700 FINRA arbitration cases.
Our dedicated attorneys are committed to representing investors in a wide range of securities-related claims. These include cases involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, unauthorized trading, and more.
With a collective experience of over 30 years in securities law, The White Law Group possesses the necessary expertise to assist defrauded investors in their pursuit of recovering their investment losses. To learn more about our services, please visit our website at whitesecuritieslaw.com.
