From the October 2008 issue of Investment Advisor • Subscribe!

NEWS & PRODUCTS, OCTOBER 2008

The SEC announced September 11 that it had brought an enforcement action against LPL Financial Corp., saying the largest independent broker/dealer had failed to safeguard its customers' personal information under Regulation S-P, leaving at least 10,000 customers vulnerable to identity theft following a series of hacking incidents in 2007 and early 2008 involving LPL's online trading platform. Reg S-P requires broker/dealers and SEC registered investment advisors like LPL to adopt policies and procedures reasonably designed to safeguard customer information. The SEC says LPL agreed to pay a $275,000 penalty to settle the SEC's enforcement action without admitting or denying the findings...

ING Advisors Network announced a reorganization under which the presidents of its four constituent broker/dealers--Financial Network Investment Corp., ING Financial Partners, Multi-Financial Securities, and PrimeVest Financial Services--will now report to John Simmers, CEO of ING Advisors Network. Previously, they reported to Randy Ciccati, president of the network, who has assumed a broader role at ING that includes leadership of ING Financial Advisers, the B/D associated with the ING retirement services business...

Ameriprise Financial has signed an agreement to acquire H&R Block Financial Advisors (HRBFA) for $315 million in cash. There are about 900 advisors employed by HRBFA; according to Ameriprise they will become "Ameriprise Financial-branded employee advisors and will strengthen the company's presence in key markets, including Florida, Texas, and California." The combined company will count 13,000 total reps; Ameriprise said "HRBFA advisors will receive attractive retention packages as part of the transaction."...

Mark Goldberg, the veteran independent broker/dealer executive who most recently ran AIG's Royal Alliance B/D, has landed at W.P. Carey as president of Carey Financial, the real estate company's broker/dealer subsidiary. In his new position, Goldberg will be responsible for sales and marketing to B/Ds of the firm's series of non-traded REITs called Corporate Property Associates...

LIMRA announced that Lawrence Niland, former chief compliance officer for Signator Investors, has joined the organization's Compliance and Regulatory Services Division...

FINRA will conduct a meeting of member firms on November 21 to elect an individual to fill the vacant Small Firm Governor seat. Nominated for the seat is Mari Buechner, president and CEO of the Madison, Wisconsin-based B/D Coordinated Capital Securities, Inc.

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