$3-Million UBS Team Goes Indie with LPL and Gladstone
Two wirehouse veterans with a $3-million book of business sparked some fireworks at UBS Wealth Management USA on July 2, leaving for an independent registered investment advisory firm affiliated with LPL Financial.Jamie L. Baraldi and Bryan Michael Dein, who were managing $350 million in client assets at UBS’s Mt. Laurel branch, opened an office of Gladstone Wealth Group in nearby Marlton, said firm chief executive Richard Frick. They have worked together for almost 20 years at Morgan Stanley, Wachovia Securities and, since January 2009, at UBS.
The advisors moved with broker Andrew Yuska (who became a registered rep in February) and a client associate, and joined the new “partnership” channel of Gladstone that offers an 80% payout.
They could have drawn a higher payout as direct affiliates of LPL, but the arrangement gives them enhanced overhead, recruiting and compliance support—plus an opportunity to sell their revenue stream if Gladstone is purchased or has another “liquidity event,” according to Frick.
Frick, who joined Gladstone in December and had run Morgan Stanley’s Philadelphia complex, said he has known Baraldi for 25 years and worked with him at Wachovia.
Baraldi, who began his brokerage career in 1993 with Morgan Stanley, said the move culminates a search of about two years motivated in part by concerns about big firms’ promotion of proprietary products and funds for which they receive fat platform fees, as well as by the growing pressure to sell investors mortgages and other loan products.
“They show advisors different investments and portfolio managers, but it might not be the most objective view,” he said of the wirehouse model, adding that he is convinced he will have access to a wider range of products and services from LPL than he was getting at UBS.
A spokesman at UBS did not return a request for comment.
The move underscores a continuing trend of broker-dealer advisers to go independent, and a growing exodus of experienced advisors from national brokerage powerhouses such as UBS, Merrill Lynch, Morgan Stanley and Wells Fargo Advisors.
UBS’s U.S. brokerage force has declined by about 90 advisors in the past quarter to 6,185, according to sources at the firm as well as an internal report reviewed by AdvisorHub.
On Monday, UBS’ Metro (New York and New Jersey) Complex Manager Kenneth Correa gave notice and plans to join Merrill following a garden leave.
Gladstone, which was founded in 2012 by Robert P. Hudson III, has added seven brokers in 2019 for a total of 62. It also has been seeking managers with recruiting chops. In May former Oppenheimer and Co. Philadelphia branch manager Michael Carberry joined the firm.
On the flip side, former UBS complex manager Rober Limmer, who affiliated with Gladstone last September, left last week to join Wedbush Securities, according to his BrokerCheck history.
Limmer is a longtime friend of Chris Mone, who took the reins of Wedbush’s wealth management business in March, Frick said.
Limmer could not be reached for comment.