No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 25, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Financial Planning

Stifel first-quarter profits down after $180 million penalty

by TheAdviserMagazine
6 months ago
in Financial Planning
Reading Time: 3 mins read
A A
Stifel first-quarter profits down after 0 million penalty
Share on FacebookShare on TwitterShare on LInkedIn



A slew of costly legal charges cut profits at Stifel’s Wealth Management division by more than half in the first quarter, the company reported Wednesday.

The firm reported record first-quarter revenue of $850 million, up 8% over the same period last year. But Stifel CEO Ron Kruszewski said during Wednesday’s earnings call that the firm’s “bottom line was impacted by a significant legal charge.”

Legal expenses totaled $180 million for the quarter, according to Wednesday’s earnings report. Last month, a three-member FINRA arbitration panel slapped Stifel with a $133 million penalty over investment recommendations made by one of its brokers involving the use of complicated investments known as structured notes.

The ruling is the second-largest penalty handed down by FINRA in its history, following a $400 million penalty against Credit Suisse in 2009. Kruszewski said during Wednesday’s call that the firm is currently appealing the decision.

READ MORE: What to expect in advisor pay in 2025

“The claims were brought by a sophisticated family of experienced and aggressive investors who understood the risks involved, participated in the selection of investments, monitored them closely and only complained after incurring losses,” a spokesperson for the firm said in an email in March.

Advisor headcount continues to fall

Stifel’s recruiting efforts weren’t enough to stave off its third straight quarter of a declining financial advisor headcount. The St. Louis-based firm reported a roughly 1% decline in its advisor numbers year over year, down to 2,340 total advisors in the first quarter.

Kruszewski said during Wednesday’s call that “the strong upward trend in markets over the last few years led many advisors to delay transition, hoping to maximize their trailing production for recruiting packages.” But the recent market pullback has prompted more advisors to shift positions, driving recruiting momentum in the industry.

READ MORE: LPL’s wealth head wants her firm to be a household name

In the first quarter, Stifel recruited 52 financial advisors, including nine “experienced” advisors, with total trailing 12-month production of just under $12 million.

“We’ve adjusted our approach to remain competitive while staying disciplined on our return on investment,” Kruszewski said. “We’re seeing early success in this initiative, and our second quarter’s off to a strong start as we’ve added seven experienced advisors with trailing 12-month revenues of $14 million and more than $3 billion in client assets.”

Kruszewski said that the firm is focused on recruiting higher-producing advisors moving forward.

Asset revenue rises, but market headwinds threaten future figures

Revenue from asset management totaled $410 million over the first quarter, driven largely by market performance. 

“This line item is closely tied to market levels, and if equity markets do not rebound, that could have a negative impact on these results in the future quarters for 2025,” Kruszewski said during the earnings call.

Total client assets for the firm were up 4% from the same period last year, to $486 billion, while fee-based client assets were up 7% to $190 billion. Both measures were down slightly from the previous quarter, 3% and 2%, respectively.

READ MORE: Why and when do financial advisors change firms? It’s complicated

“The sequential declines were due to weaker equity markets and modest asset outflows,” Stifel Chief Financial Officer James Marischen said during Wednesday’s call. “While our net new assets growth for the quarter was modestly negative, I will note that asset flows turned positive in March as net new assets for the month were in the low single digits.”

On the call, Kruszewski offered a hopeful, if cautious, forecast for market levels moving forward.

“While the current environment has introduced volatility, we do not believe a recession is likely. In our view, the disruption surrounding tariffs is not the new normal,” he said. “It’s part of a high-stakes policy negotiation strategy by the White House. Considering the underlying strength of the U.S. economy and efforts to address trade and fiscal imbalances, we remain optimistic about long-term growth. In the near term, while volatility presents challenges, we’re cautiously optimistic.”



Source link

Tags: firstquarterMillionPenaltyProfitsStifel
ShareTweetShare
Previous Post

Happier parents tap into this 1 emotion

Next Post

IBM Earnings: Highlights of IBM’s Q1 2025 report; earnings beat estimates

Related Posts

edit post
Your Top October Money Questions Answered

Your Top October Money Questions Answered

by TheAdviserMagazine
October 24, 2025
0

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage...

edit post
Client relationships still advisors’ top priority

Client relationships still advisors’ top priority

by TheAdviserMagazine
October 24, 2025
0

Enjoy complimentary access to top ideas and insights — selected by our editors. Artificial intelligence has become a fixture in...

edit post
*HOT* FREE LEGO Harry Potter Flying Car Set after cash back!

*HOT* FREE LEGO Harry Potter Flying Car Set after cash back!

by TheAdviserMagazine
October 24, 2025
0

This LEGO Harry Potter Flying Car Set is so cute! Looking for a fun new LEGO set to build? Top Cash Back is...

edit post
*HOT* 12 Chatbooks for just  shipped!

*HOT* 12 Chatbooks for just $12 shipped!

by TheAdviserMagazine
October 24, 2025
0

Get twelve Chatbooks for 2025 – one for every month! For a limited time, you can get 12 book credits for just...

edit post
Social Security benefits see 2.8% increase for 2026

Social Security benefits see 2.8% increase for 2026

by TheAdviserMagazine
October 24, 2025
0

The Social Security Administration on Friday announced a 2.8% cost-of-living adjustment for 2026, raising monthly payments for nearly 71 million...

edit post
Weekend Reading For Financial Planners (October 25–26)

Weekend Reading For Financial Planners (October 25–26)

by TheAdviserMagazine
October 24, 2025
0

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that...

Next Post
edit post
IBM Earnings: Highlights of IBM’s Q1 2025 report; earnings beat estimates

IBM Earnings: Highlights of IBM’s Q1 2025 report; earnings beat estimates

edit post
6 facts every parent should know

6 facts every parent should know

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

0
edit post
How to Make 3% More Rent Automatically (Takes 5 Minutes) (Rookie Reply)

How to Make 3% More Rent Automatically (Takes 5 Minutes) (Rookie Reply)

0
edit post
Links 10/25/2025 | naked capitalism

Links 10/25/2025 | naked capitalism

0
edit post
Rebranded Multi-Asset Broker Scales Institutional Crypto Access

Rebranded Multi-Asset Broker Scales Institutional Crypto Access

0
edit post
How to Use Your Illinois Car Accident Report in Insurance Claims

How to Use Your Illinois Car Accident Report in Insurance Claims

0
edit post
*HOT* 12 Chatbooks for just  shipped!

*HOT* 12 Chatbooks for just $12 shipped!

0
edit post
Links 10/25/2025 | naked capitalism

Links 10/25/2025 | naked capitalism

October 25, 2025
edit post
Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive

October 25, 2025
edit post
A click lower, a tick higher

A click lower, a tick higher

October 25, 2025
edit post
How to Use Your Illinois Car Accident Report in Insurance Claims

How to Use Your Illinois Car Accident Report in Insurance Claims

October 25, 2025
edit post
Markets pricey with modest EPS growth; autos, hospitality offer opportunities: Venkatesh Balasubramaniam of JM Financial

Markets pricey with modest EPS growth; autos, hospitality offer opportunities: Venkatesh Balasubramaniam of JM Financial

October 25, 2025
edit post
Like Milei, Trump also can’t stop Argentina’s peso from falling — ‘Will the U.S. get paid back?’

Like Milei, Trump also can’t stop Argentina’s peso from falling — ‘Will the U.S. get paid back?’

October 25, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Links 10/25/2025 | naked capitalism
  • Meet the billionaire couple who not only signed The Giving Pledge but actually delivered—donating nearly half their fortune while still alive
  • A click lower, a tick higher
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.