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.”…