Tracy Calder joins a lengthening line of hires that follow a deluge of SEC fines

January 26, 2016 — 4:11 PM UTC by Brooke Southall


Brooke’s Note: Maybe she’s the planet’s most experienced kindergarten cop. Dude, Tracy Calder was on the compliance beat for 18 years at UBS. They’re not saints. Nor are those boys over at J.P. Morgan Securities — not even close. See: The New York Times exposes JP Morgan’s brokers, yet again. So let’s hope LPL RIAs and IBD reps can do better. But as our compliance experts point out in this article: All the compliance adults in the world can’t work if the culture fails to do its work.

LPL Financial has named Tracy Calder as managing director and deputy chief risk officer, adding to an already impressive stable of regulatory and risk-expertise personnel.

The appointment caps a hiring binge that includes Emily Gordy, a 14-year FINRA veteran, and Jim Shorris, a former FINRA chief. See: Weighed down by nonstop fines, LPL finally buys ounce of prevention by putting ex-FINRA veterans on its payroll.

Boston—based LPL Financial also installed Viet D. Dinh on LPL’s board of directors. Dinh served as a U.S. assistant attorney general for President George W. Bush from 2001 to 2003. He was also one of the team of lawyers that helped impeach President Bill Clinton and is currently a partner of Bancroft PLLC, a law and strategic consulting firm that he founded in 2003.

But compliance experts point out that money doesn’t buy compliance unless the talent is allowed to exert its influence to support those efforts.

“It depends really on the culture at LPL,” says Peter Maftieu, principal of Sound Compliance Services in Gig Harbor, Wash. “Clearly, they have had a lot of breakdowns. One could say LPL is challenged to supervise their salesforce. Period.” See: Secret recordings reveal 'regulatory capture’ at Goldman Sachs by NY Fed examiners capitulating to the corporation — before they were even asked.

Maftieu adds: “Just seems to me that the fines are a tax — which LPL and other B-Ds are willing to pay for the profits derived.”

...Speak louder

LPL says its actions speak for themselves.

“It should be noted that we disagree with his characterization of fines being treated like a tax,” writes LPL spokeswoman Lauren Hoyt-Williams. “LPL takes investor protection seriously, as evidenced by the significant amount of resources we have invested to create a strong risk management environment. Bringing Tracy on as LPL’s new deputy chief risk officer will allow us to continue to build upon the superior risk management environment that we have created through heavy investments in people and processes.”

Michelle Oroschakoff: Tracy's addition to LPL's leadership team further demonstrates our commitment to enhancing the firm's risk profile.
Michelle Oroschakoff: Tracy’s addition to LPL’s
leadership team further demonstrates our commitment
to enhancing the firm’s risk profile.

Still, just last May FINRA cited LPL’s “widespread supervisory failures” related to its sales of complex products. See: In WSJ article, Mark Casady issues a series of mea culpas and positions LPL as a turnaround story.

LPL may have gotten religion after the critical mass of regulatory backwash it experienced and the still-present potential for lawsuits.

Big firm, big regs

“Compliance is a important part of any organization, especially firms like LPL that have a lot of moving parts,” writes Ken Kaltman, principal of National Compliance Services Inc. in Delray Beach, Fla.

“The recent fines are a big motivation to having a strong compliance department, according to an email from Compliance is cheaper than litigation.” See: The odd case of MetLife’s claim that it’s being bullied by LPL.

Calder will be based in Charlotte. and report to Michelle Oroschakoff, managing director and chief risk officer, effective Jan. 25. Calder will be responsible for the firm’s compliance and operational, market and credit risk management functions.

“Tracy’s addition to LPL’s leadership team further demonstrates our commitment to enhancing the firm’s risk profile as we manage through this dynamic period in the industry,” says Oroschakoff. “Her extensive knowledge and experience with large, complex organizations and regulatory matters will be a tremendous asset to the firm and our clients.”

Track record

Calder joins LPL from J.P. Morgan Securities LLC, where she most recently served as managing director and chief compliance officer, leading a compliance program that spanned the firm’s institutional, private client broker-dealer and RIA businesses.

Previously, she was senior vice president at Wells Fargo Advisors, where she led the retail compliance program for the firm’s broker-dealer.

Before that, Calder spent 18 years with UBS Wealth Management Americas in a variety of legal and compliance roles including head of legal for the Wealth Management Advisor Group and as chief compliance officer and senior deputy general counsel for UBS Financial Services Inc.

Calder earned a Bachelor of Arts from Fordham University and a JD from the University of North Carolina School of Law.

Mentioned in this article:

LPL Financial
Asset Custodian
Top Executive: Bill Morrissey

NCS Regulatory Compliance
Consulting Firm
Top Executive: Mark Alcaide, COO/Partner

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