| * * * * * * * * * * * * * * * * * * *
PARKER WEALTH MANAGEMENT, LLC
|
* * * * * * * * * |
STIPULATED AGREEMENT No. ST-12-8012-S |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;
WHEREAS, on March 12, 2012, Parker Wealth Management, LLC (“PWM”), a Connecticut limited liability company with a principal place of business located at 21 Burning Tree, Glastonbury, Connecticut 06033, filed with the Commissioner an application for registration as an investment adviser pursuant to Sections 36b-7 and 36b-32 of the Act;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking (“Department”) has conducted an investigation of PWM pursuant to Section 36b-8 of the Act;
WHEREAS, Jeffrey P. Smith (“Smith”) (CRD No. 5900988) is the Managing Principal and member of PWM;
WHEREAS, since April 21, 2011, PWM has been registered as an investment adviser and Smith has been registered as an investment adviser agent under the securities laws of the State of Massachusetts;
WHEREAS, neither PWM nor Smith has ever been registered as an investment adviser or investment adviser agent under the securities laws of any other state;
WHEREAS, neither PWM nor Smith has been the subject of any reported securities related disciplinary actions or complaints;
WHEREAS, Smith passed the Series 65 examination on January 26, 2011;
WHEREAS, as a result of such investigation, the Division believes that PWM has not fulfilled the experience requirements set forth in Section 36b-31-7b of the Regulations, which provides, in relevant part, that:
| (a) | Each applicant for investment adviser registration shall (1) have been engaged in the securities business as a broker-dealer, agent, investment adviser or investment adviser agent spending a major portion of his or her working time in the securities business for at least three years within the seven calendar years preceding the date of the application or (2) be otherwise qualified by knowledge and experience as determined by the commissioner. | ||
|
. . . | |||
| (d) | Persons acting as managers shall meet the experience requirements of subsection (a) of this section. For purposes of this subsection, ‘manager’ means . . . (2) any person responsible for the day-to-day operation and supervision of an investment adviser office in this state. |
WHEREAS, the Division has reason to believe that PWM and Smith, who is responsible for the day-to-day operations and supervision of PWM’s office in this state, have not fulfilled the requisite experience requirements set forth in Section 36b-31-7b of the Regulations;
WHEREAS, the Division also has reason to believe that based on such experience deficiency, a basis exists under Section 36b-15(a)(2)(J) of the Act for restricting or imposing conditions on the investment advisory activities that PWM may perform in and from Connecticut;
WHEREAS, PWM desires to resolve the matters described herein and voluntarily enters into this Stipulated Agreement Conditioning Registration as an Investment Adviser (“Stipulated Agreement”), acknowledging that this Stipulated Agreement is in lieu of any court action or administrative proceeding adjudicating any issue of fact or law on the matters described herein;
WHEREAS, PWM represents, through its execution of this Stipulated Agreement, that it has read and has familiarized itself with the Act and the Regulations thereunder, particularly those provisions governing the compliance responsibilities of investment advisers;
WHEREAS, PWM, through its execution of this Stipulated Agreement, voluntarily waives any rights it may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulated Agreement;
AND WHEREAS, the issuance of this Stipulated Agreement is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act.
NOW THEREFORE, THE PARTIES HERETO DO AGREE AS FOLLOWS:
| 1. |
For a period of two (2) years following the Commissioner’s execution of this Stipulated Agreement, PWM shall refrain from having custody or control of client funds or securities; |
| 2. | For a period of two (2) years following the Commissioner’s execution of this Stipulated Agreement, if PWM executes a discretionary trade in a client’s account, such client must be notified, in writing (electronically or otherwise) within 24 hours of the transaction. |
| 3. |
For a period of two (2) years following the Commissioner’s execution of this Stipulated Agreement, PWM shall limit its investment advice to the following: securities listed on the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market or the NASDAQ Global Market; securities issued by investment companies regulated under the Investment Company Act of 1940; commercial paper; certificates of deposit; corporate debt securities; municipal securities; securities issued or guaranteed by the United States; and insurance products subject to regulation by the Connecticut Insurance Commissioner. Nothing in this paragraph shall preclude PWM from referring clients to registered investment advisers whose activities are not so limited, and from receiving a referral fee in conjunction therewith provided that full written disclosure of the fee arrangement is made to clients; |
| 4. | For two (2) years following the Commissioner’s execution of this Stipulated Agreement, PWM shall notify the Division Director promptly, through appropriate amendments to the CRD and IARD filings of PWM and Smith, concerning any securities-related complaints, actions, arbitrations or proceedings (and any updates thereto), including the dispositions thereof; |
| 5. |
Execution of this Stipulated Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against PWM based upon a violation of this Stipulated Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof, or if any representation made by or on behalf of PWM in connection with its application for registration is subsequently discovered to be untrue; |
| 6. | Nothing in this Stipulated Agreement shall be construed as limiting the Commissioner’s ability to take enforcement action against PWM based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act or any regulation, rule or order under the Act; |
| 7. | The name “Parker Wealth Management, LLC” be and is hereby entered on the Register of Investment Advisers pursuant to Section 36b-8 of the Act; and |
| 8. | This Stipulated Agreement shall become binding when executed by all parties hereto. |
IN WITNESS WHEREOF, the undersigned have executed this Stipulated Agreement on the dates indicated.
| Dated at Hartford, Connecticut, | _______/s/____________ | |
| this 13th day of June 2012. | Howard F. Pitkin | |
| Banking Commissioner |
I, Jeffrey P. Smith, state on behalf of Parker Wealth Management, LLC, that I have read the foregoing Stipulated Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulated Agreement on behalf of Parker Wealth Management, LLC; and that Parker Wealth Management, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein, expressly waiving any right it may have to a hearing on the matters described herein.
| Parker Wealth Management, LLC | |
| By | ______/s/__________ |
| Jeffrey P. Smith | |
| Managing Member |
State of: Connecticut
On this the 11 day of June 2012, before me, Sally P. Ruef, the undersigned officer, personally appeared Jeffrey P. Smith, who acknowledged himself to be Managing Member of Parker Wealth Management, LLC, and that he, as such Managing Member, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself as Managing Member.
_____/s/__________________________
Notary Public
Date Commission Expires: Nov. 30, 2016