$3-Million Morgan Stanley Broker Goes Independent with Raymond James
(Updated with additional detail about Kanner’s new firm in second paragraph.)
A Morgan Stanley broker in Vero Beach, Florida, who has been honored as one of its top young producers, left the firm on Thursday while under internal review, according to two sources familiar with the move.Michael Kanner, who sources said had $3 million in production and was overseeing more than $500 million of customer assets, has registered with Raymond James Financial Services, according to his BrokerCheck record. He is setting up as an independent broker through Concurrent Advisors, a two-year-old network of firms that use Raymond James Financial as their broker-dealer and custodian, according to a person familiar with his new practice.
Kanner’s partner Trent Leyda remains at Morgan Stanley, where the two have worked as a team since 2009. The firm put him on leave earlier this month for what may have involved relatively small indiscretions, including modifying a client’s already signed signature page with a date, one of the sources said.
Kanner, a 16-year industry veteran who joined Morgan Stanley from Edward Jones, could not be reached for comment. A spokeswoman at the wirehouse confirmed Kanner’s departure but declined to discuss the circumstances.
His exit puts into relief the contrasting pressures at broker-dealers that are eager to nurture strong young talent while keeping advisors on the straight-and-narrow when it comes to compliance issues. Only about 11% of the wealth management advisory force in the U.S. is under the age of 40, according to a recent report from J.D. Power, while the average age of advisors is around 55.
In 2017, Forbes ranked Kanner as number 48 on its list of about 400 top millennial advisors (born in 1980 or later). It said his group at the time was managing $848 million of customer assets.
In April, UBS Financial Services terminated star broker Craig Findley, who was managing more than $1 billion for customers and who has since formed a registered investment advisor with many members of his former team. He had failed to inform the firm that an assistant had taken a compliance training module for him in an unintentional violation of firm policy, he wrote on his BrokerCheck record.
For Morgan Stanley, Kanner’s departure adds to a spate of exits at its Boca Raton, Fla., complex. A manager resigned earlier this week following the departure of five advisors earlier this year in his and other branches who were generating more than $6 million of fees and commissions annually.
Leyda and a junior broker on Kanner’s former team, John Jennings, remain at Morgan Stanley, according to their BrokerCheck records and to a person answering the phone at their Vero Beach branch.
Kanner began his brokerage career in 2003 at Edward Jones. He has two customer complaints on his BrokerCheck record, one of which was closed without action after a former Edward Jones customer dropped the complaint. A second that alleged unsuitability of bond investments was settled for just over $5,000, according to BrokerCheck.