The most recent filing by Sigma Financial Corp. reveals four open arbitration claims with total damages sought adding up to $4.5 million. The Focus Report is filed by brokerage firms with the Securities and Exchange Commission (SEC) and is in the nature of an audited financial statement.
Haselkorn & Thibaut, P.A., has started an investigation regarding the sales practices of Sigma Financial. Clients should call 1-800-856-3352 for a free consultation.
At this stage, these are only claims and have not reached the point of settlement or awarded penalties. In many cases claims are dismissed or substantially reduced in value by the time of closure. Even the nature of these claims and allegations made is not clear at this stage. However, since they have been made, Sigma needs to take them into account and prepare to handle the situation arising out of it.
Sigma Financial Corp. is an independent broker-dealer based in Ann Arbor, Michigan. It has a team of 600 representatives and financial advisors. On a revenue base of $124.3 million in 2019, as reported in the InvestmentNews’ database of broker-dealers, $4.5 million in potential payout for damages is a substantial sum, more than 3% of annual revenue. It is known that independent brokers like Sigma operate on thin margins.
Jerry Rydell, Sigma’s CEO, has not returned calls from the news sources for comments.
As per information provided in the Focus Report, that became available on the SEC website this month, Sigma has squirreled away a sum of $652K in preparation for the claims. It has provided a sum of $651,834 in its accounts as a contingency for potential losses that could arise from these claims. This is intended to cover expenses arising from the defense of these cases as well as their settlement.
Claims and settlements are not new to the Sigma group. Sigma Planning Corp., the RIA arm of Sigma Financial, had reached a settlement with SEC as recently as two years back, in which they agreed to pay $2.5 million in restitution. The allegations, in that case, pertained to Sigma Planning choosing mutual funds from which the firm received financial benefits, for client portfolios. Further, this was done without being disclosed to the impacted clients.
Sigma Financial Corporation
Sigma Financial Corporation founded in 1983 is a financial services company that focuses on helping clients achieve long-term financial success. They offer unparalleled personal service and customized programs that help clients grow and preserve their wealth. Sigma Financial Corporation is based in Ann Arbor, Michigan has over 600 brokers, and serves all 50 states.
Three firms one family
A shared website for advisors who maybe end up in a future relationship with these firms will be SPS Family. It’s three award-winning investment firms based in Ann Arbor Michigan – two broker-dealers, Sigma Financial Corporation and Parkland Securities Ltd. RIA, Sigma planning corporation. Welcome.
Sigma Financial Investing Philosophy
Sigma Financial lives for the motto: finance today… for financial freedom tomorrow! The firm prides itself in its desire to offer individual service. The firm commits to complete service and personal attention professional offering investment choice options in conjunction with detailed performance reports to its clients. Investment advice advisors of SPC may use any of the next four approaches for providing investment information to its clients. It also offers its clients many investment reports.
Services offered by Sigma Financial
SPC usually offers portfolio management over SIGMA Management Accounts. In addition to its pension advisory services, it offers employer-sponsored retirement plans and financial planning services. The Fidelity Charitable offers its clientele over $250K invested in a charitable investment advisor program and direct-at-funding programs.
Fees under Sigma Financial
Sigma Financial charges income from wealth management in relation to the accumulated assets under management (AUM). Financial planning and consulting costs are negotiable depending on the time of effort required and the complexity of services. The firm does not charge fees above 2.5% for any sum under managing. The fees are not considered transfers charges broker commissions or other fees. You pay an advice fee as an estimate of the amount of the account. Fees are negotiated directly with clients and charged quarterly based on the total value of the firm.