Stephens Inc. Alleges Conflict Of Interest By Securities Commissioner

From John Lyon with our content partner, the Arkansas News Bureau:

An official with the investment firm Stephens Inc., told a legislative panel Wednesday the state securities commissioner had a conflict of interest when he suggested that the company resolve proceedings against it by making a donation to a nonprofit organization he headed.

The Little Rock-based company also proposed statutory changes to the state Securities Department’s procedures. The securities commissioner denied any conflict of interest and criticized the proposed changes but said he would refrain from making similar settlement offers in the future.

Stephens has filed a complaint with the state Ethics Commission alleging that Securities Commissioner Heath Abshure violated state law by directing donations in lieu of fines in at least three cases, one of them involving a $150,000 donation and the others involving smaller amounts, to the North American Securities Administrators Association. Abshure was president of NASAA from September 2012 to October 2013 and continues to serve on its board of directors.

Stephens agreed in August to pay a $25,000 fine for failing to have written policies in place regarding the sale of certain exchange-traded funds. David Knight, executive vice president and general counsel for Stephens, told the legislative Joint Performance Review Committee on Wednesday that during negotiations between the Securities Department and the company, Abshure proposed that Stephens make a $20,000 charitable contribution to NASAA in lieu of a fine.

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