A Kansas financial services company is facing more fallout from past efforts to put distance between itself and its old corporate parent.[@@]
Missouri Securities Commissioner David Cosgrove issued a March 25 order suspending for 14 days starting Monday 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 Tuesday 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 Tuesday in a statement that its 450 brokers in Missouri have resumed selling financial products in Missouri after a brief hiatus caused by Cosgrove’s suspension order.
Cosgrove has been investigating Waddell & Reed because of a group of thousands of variable annuity exchanges it completed in the early 2000s.
An insurance holding company, Torchmark Inc., Birmingham, Ala., acquired Waddell & Reed and Waddell & Reed’s United Investors Life Insurance Company subsidiary in the 1980s. Torchmark turned Waddell & Reed into a separate, public company in 1998, but it kept United Investors.