Wealth Managers Jumping Ship to Avoid Disclosure of Signing Bonusesby Beecher Tuttle4 days agoFinancial advisers are rushing to switch employers before a new regulation requiring them to disclose signing bonuses kicks in. Once the new rule is in place – likely next year – wealth managers who accept six- and seven-figure signing bonuses at a new firm will have to disclose their windfall to clients.The details of the new regulation being developed by the Financial Industry Regulatory Authority in the U.S. aren’t yet clear, and FINRA declined to comment. Recruiters and wealth managers expect advisers to accelerate their job moves in the fourth quarter of 2013. “It will accelerate people moves for sure,” said James Cox, managing partner at Harris Financial Group, a Virginia-based advisory firm. “If you a recruiter, you could not have had a better situation. Advisers will try to jump in under the line.”

via Wealth Managers Jumping Ship to Avoid Disclosure of Signing … | Job News & Advice | eFinancialCareers.

J.P. Morgan Securities announced Wednesday it has added eight advisors to its offices in Boston, New York City, and Florham Park, N.J.The advisors bring a combined $745 million in client assets to the firm, and increase the total number of advisors to 455 as of February 28.“We are taking every opportunity to add top talent in growing markets, and these new advisors bring with them deep experience in the industry and in their markets,” Greg Quental, CEO of J.P. Morgan Securities said in a statement. “The combination of our boutique approach with the extraordinary depth of resources we offer continues to prove attractive to advisors and clients alike.  We are excited to welcome these new advisors to the firm as we grow our business across key markets.”

More Info: J.P. Morgan Securities Expands Advisor Force | On Wall Street.

Stifel Nabs Wells Fargo Team with $1 Billion AUM

Stifel has opened two new offices in the northwest with the addition of an 11-member team that managed more than $1 billion in assets at Wells Fargo.

The advisors, who operate under the name RMG Group, will open two offices in Bellevue, Wash., and Portland, Ore.

“The quality of their business and the integrity of their long-standing reputation in Washington and Oregon solidifies our commitment to the Northwest,” the Western Region director, John Lee, said in a statement. “I am excited about the message this announcement sends to other advisors in the region – Stifel is open for business.”

More Info Stifel Nabs Wells Fargo Team with $1 Billion AUM | On Wall Street.

Wells Fargo & Co is slashing an approved list of money managers and investment vehicles that its stockbrokers market to the firms wealthy clients, a change of direction that has rattled the third-largest U.S. brokerage network.Executives said the clampdown protects clients from exposure to a plethora of investment models that have received little oversight. It will also reduce the firms risk at a time when litigation and compliance costs are rising industry wide.Money managers affected by the cull range from big names such as JP Morgan Asset Management Inc and Legg Mason to scores of small hedge funds and regional managers. For Legg Mason alone, the number of investment products on the list will shrink to 12 from 56, according to documents reviewed by Reuters.

More:  Exclusive: Wells Fargo cuts approved list of money managers | Reuters.

The new Baird group has about $770 million in client assets, and the new Royal Alliance-affiliated reps have more than $400 million

Early Tuesday, Baird said it recruited a team of seven employee advisors with about $770 million in client assets from Wells Fargo (WFC) in Houston, while Royal Alliance announced that it added two independent teams in Chicago and Salt Lake City with combined assets of more than $400 million and nearly $3.5 million in yearly fees and commissions

More: Recruiting Roundup: Baird Grabs Wells FAs, UBS Branch Manager; Royal Adds 2 Indie Groups.

A Financial Industry Regulatory Authority arbitration panel has shot down requests for compensatory damages from both Morgan Stanley and one of its former brokers following a dispute tied to an alleged breach of promissory note agreements.The case is the latest example of how deals for sign on packages can sour when a new position at a financial services firm does not work out. Morgan Stanley brought the case against the former broker, Barney Greengrass, in December 2010 following his departure from the firm, and requested as much as $1.14 million in compensatory damages. Greengrass responded with his own claims of fraud, negligent representation, promissory estoppel and breach of contract, according to the FINRA arbitration filing. Greengrass also requested $2.14 million in compensatory damages.

More :  Arbitration Panel Rejects Morgan Stanley s Claim Against Former Broker | On Wall Street.

UBS Wealth Management Americas has picked up four advisors from Morgan Stanley Wealth Management with more than $2.37 billion in assets under management.

The moves include financial advisor team Allan Yarkin and Hank Boyce, who joined UBS in Aventura, Fla., on Feb. 27, according to their public registration records with the Financial Industry Regulatory Authority. Yarkin transitioned to Morgan Stanley in 2009, according to his FINRA records, after serving at Citigroup for 16 years. Boyce also came to Morgan Stanley in 2009 following 18 years at Citigroup. Together, they managed about $1.75 billion in client assets, according to Reuters, which first reported the moves.

More : UBS Snaps Up 2 Morgan Stanley Teams In Florida | On Wall Street.

What Is Your Advisory Practice Really Worth?

The perils of the valuation gap.

Feb. 25, 2013John Furey and Matt Cooper

Recently an advisor was interested in selling his practice that he had built over the past several years. He was 69 years of age and wanted to be completely done working in the business within a year of closing the deal with his “ideal” buyer. The practice was a 100 percent fee-only business on about $125 million in assets, an attractive attribute. The practice was generating approximately $1 million in gross revenues and the advisor/owner was taking home about $550,000 each year in income. This certainly seems like a well-run business and a desirable acquisition candidate on the surface. When asked what he thought the practice was worth, the advisor responded, “about $2.2 million.” When asked how he came up with that number, he said, “It was fairly simple—2.2 times revenue and/or four times earnings.”

More: What Is Your Advisory Practice Really Worth? | Practice Management content from WealthManagement.com.