Ages Financial Services Ltd., a Boston-area broker-dealer operating since 1984, shuttered its doors on November 18, following a $1.16 million arbitration award related to the sale of bankrupt GWG Holdings bonds. According to InvestmentNews, the claim included damages, interest, and attorney's fees, contributing to the firm's financial collapse.

The firm, which reported $12.6 million in revenue and a $400,000 loss in 2023, supported approximately 60 financial advisors. Many of those advisors transitioned to StoneX Financial Inc., Ages' clearing firm, after the closure.

This closure is not unique; at least three other broker-dealers that sold GWG bonds have ceased operations in recent years. In total, about 40 broker-dealers sold $1.6 billion in GWG bonds, leaving many investors with significant losses.

InvestmentNews reports that the $1.16 million arbitration award pushed Ages Financial below the required net capital threshold, a regulatory benchmark that ensures broker-dealers have sufficient funds to settle trades. Violating the net capital rule rendered the firm unable to continue operations. Ages had previously lost another FINRA arbitration case in 2023 over GWG bonds, resulting in a $246,000 award.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.