Local investment adviser sanctioned
State Securities Board fines firm $15K for letting license lapse for 2 years
Motorists who let their driver’s licenses expire know it’s only a matter of time before they get caught. A similar experience has befallen a Waxahachie investment adviser.
Legacy Wealth Advisers, Inc. a state-registered investment adviser located at 2100 Bates Drive in Waxahachie, has been sanctioned by the Texas State Securities Board for failing to keep its licensing up to date and maintain written supervisory procedures.
According to information on the TSSB website, Legacy Wealth Advisors consented to the entry of a Disciplinary Order that will require the company to pay an administrative fine of $15,000.
The Disciplinary Order was entered on July 30 in Austin by the Securities Commissioner, Travis J. Iles. No other improprieties were noted.
The staff of the Texas State Securities Board conducts regular inspections of licensed investment advisers.
During the inspection of Legacy Wealth Advisors, the TSSB staff found that the company’s registration with the Securities Commissioner had lapsed on two different occasions — 2019 and 2020 — for failure to timely pay annual renewal fees. In fact, Legacy Wealth Advisors was unlicensed for the entirety of 2020.
Additionally, Legacy Wealth Advisors failed to timely renew the registrations of two investment adviser representatives. One of these remained unlicensed at the time of the inspection. Yet both Legacy Wealth Advisors and the two representatives had provided investment advice to their clients during this unregistered period.
The Disciplinary Order sanctioned Legacy Wealth Advisors for providing investment advice in Texas while not registered with the Securities Commissioner.
During the inspection, the staff also found that Legacy Wealth Advisors had not developed written supervisory procedures relating to its activities as an investment adviser. Board Rule 116.10 requires investment advisers to do so, in order to prevent violations of applicable securities laws, such as failing to annually renew registrations.
The board said Legacy Wealth Advisors has agreed, as part of the Disciplinary Order, to retain an independent compliance consultant that will conduct a review of the company’s business activities as an investment adviser and assist the firm with developing written supervisory procedures and addressing other issues identified by the staff during the inspection.