Compliance December 27, 2011

Suit Claims Delphi CEO Violated Fiduciary Duty With Tokio Buyout

The Pontiac General Employees Retirement System is suing Delphi Financial Group over its buyout of Tokio Marine.   
Reported by

The Pontiac General Employees Retirement System is suing Delphi Financial Group regarding the recent purchase of the company by Tokio Marine Holding. According to news reports, the suit claims that Tokio Marine Holdings Inc.’s buyout of insurer Delphi Financial Group, Inc. shortchanges Delphi investors. CEO Robert Rosenkranz is also accused of violating his fiduciary duty by not diligently searching for the highest offer for the company and for personally receiving $55 million for the buyout.

Tokio Marine is Japan’s second-largest casualty insurer. On December 21, it agreed to pay $2.7 billion is cash for Delphi, a U.S.-based insurer that sells workers’ compensation and group-life coverage.

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Rosenkranz, Delphi’s founder, is using his position “to benefit personally at the direct expense of Delphi’s public shareholders,” lawyers for the Pontiac General Employees Retirement System said in the suit filed in Delaware Chancery Court in Wilmington.

The case is Pontiac General Employees Retirement System v. Brine, No. 7144, Delaware Chancery Court (Wilmington). 

Products December 27, 2011

Commonwealth Adds Financial Planning Software to Platform

Commonwealth Financial Network has formed a partnership with PIEtech, Inc., a software developer for financial advisers.
Reported by

PIEtech’s financial planning software is MoneyGuidePro, which has been fully integrated into Commonwealth’s Client360° platform, a web-based portal designed to give advisers a holistic view of their client’s financial picture. With the addition of MoneyGuidePro, users will be able to export account and client information directly from Client360°.

Commonwealth says integration with MoneyGuidePro saves time by eliminating the need for manual data entry. Financial advisers can export all assets held at Commonwealth—including 529 plans and alternative investments—as well as assets held away from Commonwealth, which are automatically captured by the account aggregation engine in the firm’s client portal, Investor360°.

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Commonwealth advisers are eligible to receive a 20% discount off the regular price of MoneyGuidePro.

 

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