FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.Morgan Stanley has to pay two former professional athletes over $800,000 (FA Magazine)The Financial Industry Regulatory Authority announced on Tuesdaythat Morgan Stanley Smith Barney was ordered to pay two former professional athletes over $800,000 after its brokers recommended "worthless" investments, reports Karen Demasters."Keyon Dooling, an NBA player, and John St. Clair, an NFL player, were advised to invest in Global Village Concerns, a start-up sports apparel company. In addition, it was recommended Dooling invest in Club Play, a Miami Beach nightclub," writes Demasters. "Restitution was ordered for the athletes because of the negligent supervision of the broker by Morgan Stanley, Finra says. The broker, Aaron Parthemer, was barred from the securities industry by Finra in an earlier action."Half of Americans saving for retirementsaythey have no idea what they're doing (Business Insider)The Federal Reserve's2015 reporton US household economic well-being found that 48% of respondentswho hadeither a defined contribution plan or a self-directed retirement plan were either "not confident" or just "slightly confident" in their ability to make the right investment decisions in these accounts, reports Business Insider's Myles Udland."In general, men express somewhat greater levels of confidence in their investment capabilities, with 58%of men compared to 45% of women reporting that they are mostly or very confident that they will make the right investment choices," the Fed noted.The Fed also notedthat just over 25% of respondents don't use any financial advice at all when deciding how to manage their retirement savings.SigFig raised $40 billion from investors(Bloomberg)SigFig Wealth Management LLC has raised $40 million from investors including UBS and Eaton Vance at an undisclosed valuation, reports Julie Verhage."The fundraising is the latest from arobo-advisor, which aims to use new technologyto offer better returns than traditional financial advisers," Verhage writes. "One of the largest such 'robos,' Betterment LLC,raised$100 millionin freshfunding in March to give the firm a $700 million valuation. Wealth management startup Personal Capital Advisors Corp. alsoraised $75 millionearlier this month."Wells Fargo is going to announce a robo-adviser partnership (Reuters)In other robo-advisor news, Wells Fargo & Co will announce a strategic partnership "tied to robo-adviser-type offerings"by the end of June, reportsLauren Tara LaCapra.David Carroll, the head of wealth and investment management at Wells Fargo, said that the bank's planned deal will enable it to "capture smaller clients who want to management their own investments."A former LPL executive is joining Edelman as CEO (InvestmentNews)Ryan Parker, who was most recently themanaging director of investment and planning solutions at LPL Financial, isjoiningEdelman Financial Servicesas its chief executive, reports Greg Iacurci.Edelman had about $16 billion under management as of the end of the first quarter this year.SEE ALSO:Traditional finance firms are about to be slammed by a 'perfect storm'Join the conversation about this story
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