Broker Faces Missouri Suspension Over VA Exchanges
By ARTHUR d. pOSTAL
Missouri Securities Commissioner David Cosgrove issued a March 25 order suspending for 14 days, starting on March 28, the authority of Waddell & Reed Financial Inc., Overland Park, Kan., to sell securities in Missouri. Cosgrove also scheduled an April 7 hearing to review arguments about whether the company should be barred from the state.
But a state court judge in St. Louis County responded on March 29 by issuing a temporary restraining order that bars enforcement of the suspension pending an April 4 hearing. The judge moved jurisdiction over the Waddell & Reed proceedings to the Missouri Administrative Hearing Commission, away from the state Securities Division.
Waddell & Reed said on March 29 in a statement that its 450 brokers in Missouri have resumed selling financial products in the state after a brief hiatus caused by Cosgroves suspension order.
Cosgrove has been investigating Waddell & Reed because of a group of thousands of variable annuity exchanges it completed in the early 2000s.