financial planning inc. type privately held companies industry financial planning founded 1958 headquarters fort worth texas key people james n. lanier chairman of the board j. scott spiker chief executive officer products mutual funds banking life insurance website www.firstcommand.com first command financial planning inc. is an investment adviser and a broker dealer registered with the u.s. securities and exchange commission sec the financial industry regulatory authority finra all 50 states and the district of columbia . it is a member of the securities investor protection corporation sipc . 1 first command is recognized in the financial planning industry as an fpa alliance firm one of only two companies ever to receive this elite recognition from the 27 000 member financial planning association . first command provides personalized services through locally based trained and licensed financial advisors and through its home office in fort worth texas . the company offers advice on securities with an emphasis on mutual funds annuities life insurance and municipal funds including section 529 plans . through related companies it offers insurance and banking products and services . 2 as of december 31 2009 first command had more than 285 000 client families 14.7 billion in managed assets 51.7 billion in life insurance policies in force and 615 million in banking assets . 2 the company has a long history of working with military officers . in 2004 a u.s. securities and exchange commission sec report noted the great majority of the firm s agents are former commissioned or non commissioned military officers . 3 the report was part of the proceedings in reaching a settlement with first financial over charges that the firm willfully violated the securities act of 1933 section 17 a 2 dealing with inter state fraud in marketing financial instruments to veterans . 3 contents 1 history 1.1 early years 1.2 international expansion and corporate growth 1.3 name change to first command 1.4 charges of fraud against veterans 1.5 current operations 1.6 recognition as fpa alliance firm 2 corporate governance 3 first command financial behaviors index 4 financial planner oath 5 affiliated companies 6 other 7 notes 8 references history edit early years edit first command was founded in 1958 by carroll payne a retired military officer who realized that military families needed assistance in planning for their financial futures . payne wanted to create a company that recognized and dealt with the unique circumstances applicable to united states military personnel . 4 the company began as a broker dealer called united services investment association inc. usia which later became united services planning association inc. uspa . usia s membership in the nasd now finra was approved on jan. 21 1959 . 5 in 1963 uspa began offering financial plans to its clients designed to promote long term saving and investing . dollar cost averaging and a pay yourself first approach were also used to encourage clients to invest on a regular basis . 6 in the mid 60s uspa expanded its product offerings to include life insurance leading to the creation of the independent research agency for life insurance inc. ira . 5 in 1970 uspa and ira began operating under the combined name of uspa & ira a name which remained in use for the next three decades . international expansion and corporate growth edit in 1979 the company opened its first office outside the continental u.s in hawaii ; three years later international operations began with an office in germany . 5 a charitable foundation now known as the first command educational foundation began in 1983 . 5 payne died in 1984 and was succeeded by ralph smith who served as chairman and ceo until his retirement in december 1985 . george talley then served as chairman and ceo from 1986 1991 . 5 during talley s tenre uspa & ira grew to 500 advisors and exceeded 200 000 families . 6 lamar smith company president and coo was promoted to chairman and ceo in 1992 . first command bank opened for business on april 21 1997 . in less than six months the bank was posting more than 100 new deposit accounts and 50 new loans weekly . 6 in 1998 uspa & ira went private transitioning from a c corporation to an s corporation and later in 2002 become 100 % employee owned . 5 uspa & ira launched a tax services program in 2001 . name change to first command edit uspa & ira changed its name to first command financial planning in 2001 . 5 the company explained that it changed its name because we are sometimes confused with other companies that service the military and former military clientele and whose names also start with letters us ... . there are several such companies but none like us and we don t want any confusion . 7 charges of fraud against veterans edit in 2004 a new york times investigative report by diana b. henriques named first command as being one of several investment firms engaged in deceptive marketing of financial instruments aimed at military veterans . 8 on 15 december of that year the u.s. securities and exchange commission sec determined that first command had willfully violated the securities act of 1933 section 17 a 2 dealing with inter state fraud in its marketing activities targeting veterans . 3 in particular the sec concluded that first command had sold mutual fund investments to veterans termed systematic plans that bore very high sales charges termed front end sales loads by in part making misleading statements and omissions concerning among other things a comparisons between the systematic plan and other mutual fund investments ; b the availability of the thrift savings plan tsp which offers military investors many of the features of a systematic plan at lower costs ; and c the efficacy of the front end sales load in ensuring that investors remain committed to the systematic plan . 3 in an independent investigation the national association of securities dealers nasd charged first command with inappropriately confronting a customer who complained failing to maintain e mail failing to maintain adequate supervisory systems and procedures and filing an inaccurate form u 5 regulatory report . 9 10 in december 2004 first command entered into a 12 million settlement with the sec and nasd without admitting guilt . 11 as part of the settlement first command agreed to offer restitution to all clients who had purchased and sold a systematic plan between 1999 and 2004 establishment of educational programs and monitoring or prefiling . 12 people who had not terminated their systematic plan were not covered in the settlement . in september 2007 a california judge granted class action status to a 2005 lawsuit filed by systematic plan holders whose plans were active when the sec issued its ruling on december 15 2004 . 13 in october 2008 attorneys for the plaintiffs sought court approval for a settlement . 14 the settlement was approved by the court in april 2009 . current operations edit in the mid 2000s first command expanded beyond the military to serve federal employees and other consumers . 15 it then began to serve small business owners 16 realtors 17 and women . 6 18 in 2005 first command hired adan araujo the senior counsel for the sec as its new chief compliance officer . 19 to that end they recruited bachrach and associates inc. according to financial planning magazine bill bachrach is one of the four most influential people in the financial services industry . 20 bachrach said sales techniques are what have to be used with people who don t trust someone . we ll teach planners how to quickly and predictably earn people s trust so they don t have to sell . when a financial advisor is trusted people will give them all of their money and follow their advice without having to be sold . don t be a salesperson . be a trusted advisor . 21 in anticipation of an sec ruling requiring that all firms whose primary business is financial planning must become a registered investment advisor ria first command filed with the sec to become one in the spring of 2005 . this requires their agents to obtain additional training and certifications . as rias the agents could now use the term financial advisors as compared to registered agents with the former being held to a higher ethical standard . 22 the higher standards require agents to document every client interaction in great detail and apply due diligence to all investment recommendations to ensure they are in the best interests of the client . 23 the company no longer offers the controversial systematic investment plans . 1 as of august 2006 mary shapiro the nasd vice chairman and president of regulatory policy and oversight continued to be critical of first command calling it an unscrupulous organization with an awful product . first command s new president marty durbin responded to her criticism by stating it s unfortunate that settling these charges still doesn t mean it s behind us . but it s a futile effort to try to fight negative press and so we decided not to put a lot of energy that way . 24 in january 2007 first command board of directors announced that they were separating the chairman of the board and ceo functions . lamar smith who had held both positions since 1992 relinquished the chairman of the board and remained chief executive officer . jim lanier a former president and coo and 20 year board member of first command became the chairman of the board . 25 in april 2007 the first command board of directors announced that ceo lamar smith was departing to become chairman emeritus . chairman of the board jim lanier assumed the role of interim ceo and scott spiker took over as the company s new chief executive officer on sept. 1 2007 . spiker had held top leadership positions at norwest corp. rbc dain rauscher definity health stanton group and destiny health . 26 in april 2007 the secretan center announced a strategic initiative to assist first command in the continuing expansive transformation of the organization . the secretan center is a global consulting practice specializing in cultural and leadership transformation . first command contracted with the secretan center for research coaching and other services designed to help achieve a cultural transformation that will raise the level of inspiration of all clients financial advisors and employees and implement sought after corporate changes and outcomes . dr. lance secretan founder of the secretan center said we are excited and inspired to accompany first command financial services on its journey of organizational change . first command is regenerating itself moving assertively in a bold new direction . the secretan center is committed to helping them in every way we can because their values and their hearts are in the right place . 27 also in 2007 first command introduced tailored professional services a fee based planning program . 23 recognition as fpa alliance firm edit in 2009 first command was recognized in the financial planning industry as an fpa alliance firm one of only two companies ever to receive this elite recognition from the 27 000 member financial planning association . in an april 2009 announcement fpa president richard salmen said first command was being recognized for its commitment to professionalism in financial planning . first command has publicly demonstrated a commitment to putting their clients interests first . the company has registered with the sec as an investment adviser and all of its financial planners are registered as investment adviser representatives under first command s ria . and first command has met the program requirements including adherence to the principles of professionalism for fpa alliance . the firm has a strong commitment to lifelong learning and leadership development . 28 corporate governance edit first command s