Independent Portfolio Consultants (IPC) has transferred 1,400 client accounts worth over $1 billion away from troubled broker-dealer Jesup & Lamont Securities Corp. to the broker-dealer subsidiary of Clearbrook Financial, according to a Tuesday, August 10, news release.
The deal closed just two months before the Financial Industry Regulatory Authority Inc. (FINRA) suspended New York City-based Jesup & Lamont in July for failure to comply with a net capital rule. With its ability to make money essentially shut down by FINRA, Jesup & Lamont has seen both clients and advisors scurry for the exits. Efforts to reach Jesup & Lamont were unsuccessful; the firm’s website is no longer publicly available. FINRA’s BrokerCheck lists regulatory action taken against Jesup for compliance violations.
Clearbrook Financial‘s subsidiary, Managed Account Services (MAS), will provide broker-dealer and administrative services for IPC, including trade and clearing support, fund and asset transfer, regulatory, and related services. IPC client assets will continue to be custodied with First Clearing LLC, an affiliate of Wells Fargo Bank.
“The transfer occurred in May, and account conversion is now complete. It was incredibly smooth,” said Clearbrook Managing Principal John Morris in a phone interview. “All IPC clients were notified of the transfer, and no clients had any complaints.”
Morris added that his firm “didn’t know anything that was going on” with Jesup & Lamont’s compliance issues.